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Question -
a. Auditors cannot always predict future events or conditions which may cause going concern problems. For this reason, the fact that an entity may cease to exist as a going concern after receiving an audit report that does not refer to a substantial doubt about going concern even within a year after the statement date. Similarly, the absence of a reference in an auditor's report to substantial doubt is not a guarantee as to the entity's ability to continue as a going concern.
b. During the time of economic downturn when investments are very sluggish, going concern matters become an area of heightened risk. What should auditors do for assessing going concern of clients?
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