Auditor''s procedures - going concern, Auditing

Auditor's Procedures - Going Concern

In forming a thought on the going to relate position of a company, the auditors have to:

a) Examine the company, its plans for the future, its background, review of cash flows and the financing plans;

b) At every level of the audit research for and evaluate evidence for and against the going to relate applicability;

c) Whether he is in doubt, and the directors have formulated plans for the continuation of the company, he has to evaluate these plans, ensuring about:

  • All parts of the plan are consistent along with each other;
  • Whether the plans are contingent on the response of third parties then he has to seek third parties written verifications;
  • Ascertain such the plans are particular rather than common;
  • Review the supporting evidence for the plans whether available for reasonableness;
  • Seriously consider several professional advices obtained through the directors;
  • Consider any potential support from other group companies through looking at any contractual obligations, director's intentions and the capability of the assembly company to provide the support.


d) Consider where he has enough evidence to form a thought on the applicability of the going to relate assumption.

Posted Date: 1/28/2013 2:08:13 AM | Location : United States

Related Discussions:- Auditor''s procedures - going concern, Assignment Help, Ask Question on Auditor''s procedures - going concern, Get Answer, Expert's Help, Auditor''s procedures - going concern Discussions

Write discussion on Auditor''s procedures - going concern
Your posts are moderated
Related Questions
Valuation - Detailed Audit of Stock IAS 2 prescribes such stock be priced at the lower of price and net realizable price, It is up to the auditor to ensure that net realizable

Audit Function The audit functions as follows as: 1. To verify the estimation of timing differences; 2. To ensure such permanent differences have not been got into accou

what is the role of a joint auditor

Sundry Debtors and Loans Sundry debtors and loans are not generally material assets of companies another than those companies whose business is to create loans.  We shall cons

Advantages and Disadvantages of a Continuous Audit Advantages: The regular or continual attendance of the auditor might act as a deterrent to scam; Weaknesses in the

Tangible Non Current Assets The verification approach is fundamentally similar in each of these.  Extensive disclosure is utilized in most countries and IAS 16 Property Equipm

Audit Sampling ISA 530 Audit Sampling and Other Selective Testing Procedures states Audit sampling is the application of a compliance or substantive procedure to less than 100%

Reliability - Sources of evidence Reliability of audit evidence is influenced through its nature and its source and since it is dependent upon the specific circumstances, we c

Verification Work - Audit Process At the same time the audit process will need verification work as an example: examination of costing records, allocation and verification of

Advantage and Disadvantage of Judgmental Sampling The advantages of judgment sampling The approach is understood as well and has been refined through experience o