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Question - Going Concern Uncertainty: The auditors of the CRX Inc. financial statements for the year ended December 31, 20X7, have decided that there is substantial doubt that CRX can continue to exist as a going concern because the company has experienced significant operating losses since 20X5 and has had to get permission from its lenders to postpone its debt payment requirements. CRX's management has agreed to describe the problems in the president's message to the shareholders in their annual report but has decided not to reflect this situation in the notes to the financial statements.
Required - Discuss fully the type of audit opinion to be issued in this situation, including a description of any information that would be necessary to the standard audit report. Describe what change(s) would be necessary for CRX to obtain an unmodified audit opinion in this case.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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