An entity has incurred losses during the last four years and its current liabilities exceed its total

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An entity has incurred losses during the last four years and its current liabilities exceed its total assets. The entity was in breach of its loan covenants and has been negotiating with the related financial institutions in order to ensure their continuing support. These factors raise substantial doubt that the entity will be able to continue as a going concern. 

How should management deal with this matter?

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