Page 19 - GOING CONCERN AND RELATED ISSUES

GOING CONCERN AND RELATED ISSUES

Letters of support

Definition: An undertaking usually but not necessarily by

a parent company giving comfort about financial support

to be provided to its subsidiary.

Use of Letters of Support as Audit Evidence:

• Auditor must be satisfied of:

• Bona fides of the provider

• Whether provider will continue support or will renege on the

undertaking as soon as audit is complete.

• Provider status – ability to provide support

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