There has been a sharp increase in the emergence of financial technology firms (also known as FinTech firms) over the pa
Posted: Thu Apr 28, 2022 11:14 am
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 2021
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 Afterpay and Zip. The
emergence of these firms, associated with new business models,
digitalisation and cost pressure, brings on new challenges for
auditors.
Using knowledge to discuss:
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.
Rubik:
Evaluates critically how the financial and market performance of
the firm impacts the going concern assumption and provides insights
as to why this is relevant to the auditor.
technology firms (also known as FinTech firms) over the past few
years. For example, in Australia where low interest rates in 2021
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 Afterpay and Zip. The
emergence of these firms, associated with new business models,
digitalisation and cost pressure, brings on new challenges for
auditors.
Using knowledge to discuss:
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.
Rubik:
Evaluates critically how the financial and market performance of
the firm impacts the going concern assumption and provides insights
as to why this is relevant to the auditor.