Discuss how you would assess the going concern risk

Reference no: EM133131461

Question: There has been a sharp increase in the emergence of financial technology firms (also known as FinTech firms) over the past few years. For example, in Australia where low interest rates in 202 I contributed to a ten percent increase in the number of firms operating in the lending, mortgage and buy-now-pay-later category within the sector. Most notably, firms like Aftcrpay and Zip. The emergence of these firms, associated with new business models, digitalisation and cost pressure, brings on new challenges for auditors. You are part of a team at Joyful Audits, a medium sized audit firm located in Australia, who was recently approached by Zip to conduct their audit for 2022.

Using knowledge developed from independent research and analysis to discuss the following:

In 2021, Zip reported a loss of $678,065,000 and the share price fell from $12.35 to $4.33 between June and December. Discuss how you would assess the going concern risk in relation to Zip.

Reference no: EM133131461

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