Assesing the going concern of a company with the MEFAT model

Author:university professor, PhD Alexandru ŢUGUI

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Keywords:MEFAT, financial indicators, the going concern, IT model

Abstract:
The author wishes that by the current study to bring into practitioners’ attention i the financial audit area an instrument very useful in assesing the global finalcial performances of a company and implicitly of its going concern. It is well knwn that the assesmnet of the going concern of a company in Section F – Audit approach is based on a calculation of a series of financial indicators, followed by their interpretation. For this purppose the MEFAT model for a global financial evaluation it is propossed with which the going concern of a company can be assessed from the financial performances point of view without being necessary a seperate interpretation of each indicator. \r\n\r\nIt is mentioned that this model was the subject of a research grant financed by CNCSIS during 2002 -2003. \r\n\r\nThe idea according to which using the MEFAT model does not completely substitute the professional judgement of the auditor referring to the going concern of the audited entity, but on contrary it provides some additional hints on the assessment of the financial health of the company and direcly linked with the going concern assessment should be pointed out. \r\n\r\nIn order to help the practicioners the author makes available an informational model which is possible to be used when assessing the going conern by using the MEFAT model. This IT model can be downloaded from the www.diafin.ro website.\r\n\r\n

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