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

Pension funds - specialized audit situation, Pension Funds - Specialized Au...

Pension Funds - Specialized Audit Situation Pension funds are set up through companies or another organization: (a)  To retired employees to administer the pension payable

Charities and non governmental organizations, Charities and Non Governmenta...

Charities and Non Governmental Organizations Key audit areas: Income: donations therefore are not easy to confirm good internal control is needed particularly o

Process to adopt liabilities, Process to Adopt Liabilities It is signi...

Process to Adopt Liabilities It is significant that the auditor realises which such liabilities can exist and he should obtain reasonable steps to unearth them whether they ex

Audit, The auditors for Weston University are conducting their audit for th...

The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is now focusing on the audit of revenue from

Techniques of obtaining evidence, Techniques of Obtaining Evidence ISA...

Techniques of Obtaining Evidence ISA 500 mentions them as such: Inspection of documents or records, Inspection of tangible assets, Observation, Inq

RISKS AND CONTROLS, oversee commission staff to ensure individuals are prop...

oversee commission staff to ensure individuals are properly trained and monitored probable risks, controls and audit tests

Assertions about classes, Assertions about classes Assertions about ...

Assertions about classes Assertions about classes of transactions and events for the period under audit : a) Occurrence -events and transactions which have been recorde

Profesional ethic, Ask quesThe following situations involve a possible viol...

Ask quesThe following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Co

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