Auditor''s procedures - going concern, Auditing

Assignment Help:

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.


Related Discussions:- Auditor''s procedures - going concern

Examples of liabilities, Examples of Liabilities Examples of those lia...

Examples of Liabilities Examples of those liabilities are: a) Claims by employees for injury at work such should be covered through workman's compensation; b) Claims thr

Building societies - specialized audit situation, Building Societies - Spec...

Building Societies - Specialized Audit Situation Building Societies are organisations that exist to offer a savings and investment intermediate to the public and to lend to pe

Existence - detailed audit of stock, Existence - Detailed Audit of Stock ...

Existence - Detailed Audit of Stock In the previous the auditor accepted a director's certificate as to the existence of stocks.  Until some cases specifically in the United S

Matters of audit process, Matters of Audit Process Another matter to b...

Matters of Audit Process Another matter to be covered as: 1. Accounting policies: these should be uniform all over the group and should be properly disclosed. 2. Consoli

Inter-related components of internal control, Part A: What are the five...

Part A: What are the five inter-related components of internal control? Briefly discuss them. Part B: A file maintained by the Accounts Department for one of Sharp's s

Liability to third parties, Liability to third parties For long time li...

Liability to third parties For long time liability to third parties existed only in respect to physical damage. Liability for financial loss is a current development.  Illustra

Audit procedures for obtaining audit evidence, Question: Part A (i...

Question: Part A (i) List and define five audit procedures for obtaining audit evidence. (ii) Why is it necessary to obtain corroborating evidence for inquiry and obser

Verification work - audit process, Verification Work - Audit Process A...

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

Communication with the expert, Communication with the expert If the aud...

Communication with the expert If the auditor intends to use the work of an expert then he must communicate with the expert well in advance to confirm the terms of engagement an

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd