Entity a Had an Excellent Year with Record Profits

True/False

Entity A had an excellent year with record profits. However, Entity A experienced an unanticipated and significant downturn after the reporting period, but before the financial statements were authorized for issuance. The downturn was very severe and casts doubt on the ability of the entity to continue. Management must assess this event and determine the appropriateness of the going concern assumption for last year's financial statements.