AUD question

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    Topic
  • #196683
    jbarbarito
    Participant

    When an auditor accesses an entity’s plans for dealing with the adverse effects of future going concern issues, an auditor considers increasing equity ownership as a mitigating factor. I’m confused how repurchasing a companies stock reduces a companies equity ownership? Wouldn’t buying back stock increase stockholders equity? Also, would it matter if the stock was purchased below book value? Thanks in advance!

    BEC- 75
    AUD- 84
    REG- 81
    FAR-

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