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ACC 546 Case 12.4 Surfer Dude Duds Inc
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ACC 546 Case 12.4 Surfer Dude Duds, Inc
[1] What are Scott’s options?
[2] How might a going-concern explanatory paragraph become a “self-
fulfilling prophecy” for Surfer Dude?
[3] Discuss the importance of full and accurate auditor reporting to the
public, and describe possible consequences for both parties if the going-
concern explanatory paragraph and footnote are excluded. How might
Scott convince George that a going-concern report is in the best interests
of all parties involved?
[4] What potential implications arise for the accounting firm if they issue
an unqualified report without the going-concern explanatory paragraph?
[5] What factors might motivate Scott to be objective in his decision,
despite his personal concern for his friend?