- 15 Marks
AAA – Nov 2011 – L3 – SB – Q5 – Review of Subsequent Events and Going Concern Assumptions
Identifies going concern symptoms, audit procedures for evaluating going concern, and factors to assess continuation potential.
Question
When a company is experiencing going concern problems, it may exhibit various financial and non-financial symptoms.
Required:
(a) State FIVE financial and FIVE non-financial going concern symptoms.
(5 Marks)
(b) State the audit procedures you would adopt as an auditor to determine whether a client company is experiencing going concern problems.
(6 Marks)
(c) What other factors would you consider in assessing if the company can continue despite the going concern issues?
(4 Marks)
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