Counter - indications, Auditing

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Counter - Indications

That the auditor has found indications of going related to non-applicability does not of itself justify instantly conclusion that the entity is not a going to relate.  Also he must seek for mitigating factors or counter-indications.  This may involve the following as:

a) Ability to raise cash through selling assets

b) Ability to receive new sources of finance as an example hiring, factoring debts, plant leasing.

c) Opportunity of rearranging debt conversion or repayments of long term debt in equity.

d) The opportunity of a rights matter.

e) Support from other collection of companies or from associated companies.

f) The probability of creating alternative trading arrangements.


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