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Question - You are the audit manager on the audit of WorkWe Limited for the year ended 30 June 2020. WorkWe is an Australian listed company that provides work spaces, desks, conference rooms and facilities for small businesses for different time periods from monthly, quarterly, and annually. WorkWe has locations in Sydney, Melbourne and Brisbane.
On 15 July, 2020, due to outbreaks of COVID 19 in Sydney, Melbourne and Brisbane, the business underwent a lockdown and as a result, no one was allowed to enter and use WorkWe's premises and facilities. No date has been set for an end to this lockdown.
Required -
a) Explain how this event and the subsequent lockdown would impact the going concern assumption for WorkWe Limited.
b) Explain the impact of this event (the lockdown) would have on the Audit Report.
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?
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