If going concern is not valid, what must be disclosed and what basis of reporting used?

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When going concern is no longer valid, the financial statements cannot be prepared on the ordinary ongoing basis. The essential step is to disclose that going concern is not appropriate and to prepare the reports on a different basis of reporting that reflects how the entity will wind down or settle its obligations—typically a liquidation basis or another suitable basis. This disclosure shows users why the numbers are different and what basis was used to measure and present assets and liabilities. The other options miss the central requirement: there isn’t a mandate for immediate liquidation and cash-basis reporting, nor is no change required, and routine asset audits are not the issue here.