Question

What is the assessment of the issues pertaining to the GOING CONCERN Issues…and why you believe SEARS & TOYS R US DID NOT include Going Concern Opinions prior to their DECLARATION of Bankruptcy……Is the CEO responsibility…or did the AUDITORS fail??

Answer 1

The company had to report in their financial reports about the continued losses for the 11 long years

and they could if the bankruptcy was a plan of the company from the long run has altered the going concern of the company the but the losses were being reduced from a top point of 836 million in 2015 to 562 in 2017 the company was trying to get back to its former positions by selling huge assets and settling o the debt and leases which played a crucial part in the company's losses

the CEO of the company Mr.Eddie Lampert had huge investments in the company which can be understood that he or nor the company was not considering bankruptcy as their option but the auditor's on the other hand which were dealing with the accounts could have understood that this was a sinking ship and could have asked the company to report the heavy losses which it was having and change the going concern of the company

The fact that they have not said the above mentioned is to be considered a crime towards the petty share holders as it is mentioned that the auditors are responsible of these matters it does not mean that the CEO of the company is free of the charges he could have also understood from the market share of the company and the continued losses that the company is being drowning and the management could have consulted to some and could have done some changes to there policies to increase its chances to becoming profitable again

concluding the words i would like to say that both the management as well as the CEO is responsible but the main responsibility tends to be with the auditing team whose was not aware of the companies present situation and they could not anticipate the future of the company