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

Action if management refuses to provide representations, Action if Manageme...

Action if Management Refuses to provide Representations Whether management rejects to provide a representation which the auditor considers compulsory, this constitutes a scope

The concept of audit evidence, The Concept of Audit Evidence Auditing i...

The Concept of Audit Evidence Auditing is an evidence gathering exercise. It is an exercise carried out to confirm the assertions made by the management in carrying out the man

Need for an audit, Need for an Audit Whether you take an example for a...

Need for an Audit Whether you take an example for a modern large liability company, such we can clearly differentiate between those who control those funds the providers of fu

Audit of group accounts, Audit of Group Accounts The main problems can...

Audit of Group Accounts The main problems can be split into three sections in this area as: 1. The audit of the holding company confirming and obtaining information concern

Seek out transactions with related parties, Seek Out Transactions with Rela...

Seek Out Transactions with Related Parties  Within the course of the audit, the auditor carries out process that may identify the existence of transactions along with related

Selection of a sample - audit process, Selection of a Sample - Audit Proces...

Selection of a Sample - Audit Process The following accounts must be involved in debtor's circularisation: 1) Large balances since they are large and the moreover you can sub

Banks, Banks The Authoritative documents are: The Central Bank of...

Banks The Authoritative documents are: The Central Bank of Kenya Act, The Companies Act Cap 486. IAS 30 Disclosure in the Financial statements of Banks and Similar

#titl Assessment Criteria Sheets Risk analysis report Sue.., Assessment Cr...

Assessment Criteria Sheets Risk analysis report Subject Learning Outcome: To examine techniques used by auditors, including risk analysis, evidence collection and evaluation Below

Corporate governance, what are requirements for a company to comply with ki...

what are requirements for a company to comply with king code?

Auditors independence, Identify and explain FIVE risks to independence aris...

Identify and explain FIVE risks to independence arising in carrying out your audit

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