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

Simple trust, Simple Trust - This type of TRUST is essential to distribute ...

Simple Trust - This type of TRUST is essential to distribute all its income currently, whether or not the TRUSTEE actually does so and it has no provision in trust instrument for c

Audit of the financial statements of e limited, An audit team is currently ...

An audit team is currently engaged in planning the audit of the financial statements of E Limited as at 30 June 2011. This was the first accounting period during which all the tran

Summary of ias 2, Summary of IAS 2 Inventories are measured at the low...

Summary of IAS 2 Inventories are measured at the lower of cost and net realizable value. Entire realizable price is the calculated selling price in the regular course of busin

Basic elements of a management representation letter, Basic Elements of a M...

Basic Elements of a Management Representation Letter Whenever requesting a management representation letter, such the auditor would request which it be addressed to the audi

Types of audits, Types of audits So far we have tended to think in term...

Types of audits So far we have tended to think in terms of the audit of limited companies, and indeed, the emphasis throughout this text will be on such companies incorporated

Explain an example relevant to the audit of purchases, QUESTION: (a) T...

QUESTION: (a) The auditor should get relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions therefrom: (i) What do you understand by

Capital commitments - audit process, Capital Commitments - Audit Process ...

Capital Commitments - Audit Process The Companies Act needs capital commitments be disclosed through a way of note to the accounts.  Therefore the auditor must execute suffici

Audit reports - going concern, Audit Reports - Going Concern In the va...

Audit Reports - Going Concern In the vast widely of cases, the going to relate assumption is suitable and whether applied no mention require be made in the auditor's report.

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

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