going concern

Question 1

auditor responsibilities in relation to going concern

Answer 1

1) obtain SAE and conclude on management’s appropriateness of use of going concern basis

2) to conclude, based on evidence, whether any material uncertainty exists related to going concern

3)to determine the implications for the auditor’s report in accordance with ISA 570.

Question 2

going concern is imp at which stage of audit cycle?

Answer 2

going concern is therefore not just something considered at a particular stage in the audit cycle, but should be an issue that permeates the whole performance and review of an audit.

it should be considered when:
-planning stage risk assessment
-mid audit risk assessment
-evaluation of audit procedures
-audit opinion