QUESTION $1(25$ Marks$)$

$1\mathrm{.}1.$ Briefly explain why auditors are interested in the going concern ability of a company? $(6$ marks$)$

$1\mathrm{.}2$ Where a company is required to disclose a going concern problem in its notes, what information should

the note contain?

$(3$ marks$)$

$1\mathrm{.}3.$ In terms of ISA $570($Revised$)-$ Going Concern, the adoption of the going concern basis of accounting in

the preparation of the annual financial statements means $...?$

$(3$ marks$)$

$1\mathrm{.}4.$ If a material uncertainty exists relating to the company$$s ability to continue as a going concern, can the

going concern basis for the preparation of the Annual Financial Statements be adopted? Explain.

$(3$ marks$)$

$1\mathrm{.}5.$ Is going concern an assertion? Discuss. $(2$ marks$)$

$1\mathrm{.}6.$ What are the objectives of the auditor when conducting audit procedures relating to the going concern

assumption?

$(4$ marks$)$

$1\mathrm{.}7.$ If management $($the directors$)$ have already performed an assessment of their company$$s going concern

ability, is it necessary for the auditor to perform an assessment of going concern? Justify.

$(4$ marks$)$