Audit procedures for going concern assumptions/or Risk assessment procedures
Ans_
In obtaining an understanding of the entity, the auditor should consider whether there are any events or conditions related to going concern or business risk have been identified which may cast significant doubt on the entity’s ability to continue as a going concerns in performing audit procedures throughout the audit.
The auditor should-
01. Review management plans for future action based on its going concern assessment.
02. Gather sufficient appropriate audit evidence to confirm or dispel whether or not a material uncertainty exists.
03. Insure that adequate disclosure is made in the financial statements.
04. If that adequate disclosure is made in the financial statements, the auditor should express an unqualified audit opinion
05. If that adequate disclosure is not made in the financial statements, the auditor should express “a qualified or adverse audit opinion”