Documente Academic
Documente Profesional
Documente Cultură
Investigations II
Audit Finalisation
inability
to compete due to
changes in technology.
externallyforced reductions in
operations.
loss of key staff.
loss of key suppliers or customers.
Continued…
Other Factors
impact of major litigation.
other uncertainties.
Going concern audit
procedures
The auditor will examine matters such as:
cash budgets if available;
forecasts;
business plans;
good order book statistics;
evidence of bank support for one year
ahead;
active tendering for new business;
evidence of healthy cash inflows;
good staff morale.
Effects of Going concern
issues on the audit
May cause auditors to disagree with
directors.
Management representation may be
required on the directors’ assessment of
going concern.
Creates reporting issues which could lead
to qualification on the basis of:
a) Limitation of Scope
b) Disagreement on law and accounting
principles.
5. Subsequent Events Review
“Subsequent events” are
defined for the purposes of ISA
560 as events that occur
between the balance sheet
date and the date of the
auditors’ report, as well as
facts discovered after the date
of the auditors’ report.
ISA
560 requires auditors to
consider the impact of
subsequent events.
Key Consideration
Provisions of ISA560
Key Audit focus
Compliance with
accounting regulations.
Consistency and
reasonableness
Significance of
unadjusted differences
End