Page 4 - GOING CONCERN AND RELATED ISSUES
P. 4

GOING CONCERN AND RELATED ISSUES




                                      Objectives of the topic








            • Explain management’s responsibility in relation to the

                GC assumption used in preparation of AFS.


            • Explain auditor’s responsibility in relation to the GC

                assumption used in preparation of AFS.


            • Discuss the risk associated with the inappropriate use
                of the GC basis of accounting when planning an audit.


            • Describe the procedures the auditor should carry out to

                “audit" the GC basis of accounting.


            • From a conclusion on the appropriateness of the GC

                basis of accounting in the preparation of AFS.


            • Justify and draft the appropriate audit opinions that
                should be expressed for a client experiencing GC

                problems.


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