Explain the going concern assumption

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(i) You are now asked to consider an audit strategy in relation to the revenue account. Assuming that both inherent risk and control are high regarding the revenue account, what audit strategy should be adopted for the audit of the revenue account?

(ii) Assuming that the auditors require Detection Risk to be LOW in order to reduce Audit Risk to an acceptably LOW level overall, what impact would this have on the determination of the materiality threshold/figure?

(iii) Explain the going concern assumption. What is the significance of the going concern assumption to the client management and to the auditor?

Reference no: EM132816797

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