Questions: 1. According to auditing standards, what specific responsibilities does the auditor have in evaluating the client as a going concern? Be sure to cite the appropriate standard(s).Do not quote the standard(s); use your own words. 2. Would you issue a going concern opinion to Mean Green Jeans? Why or why not? 3. Assume you decided to issue a going concern opinion and Mean Green Jeans was able to thrive in 2015, erasing any concern about its financial health. Does this mean that the going concern modification was the wrong opinion? Why or why not? 4. According to auditing standards: (a) Describe the difference between Type I and Type II subsequent events. (b) What procedures should an auditor perform to identify and evaluate subsequent events? Cite the appropriate standard(s) and describe the audit procedures in your own words. 5. Will you accept Mean Green Jeans’ accounting for the loss of the account receivable? Why or why not?
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