Question: Question 4 [20 marks] Going concern assumption is an important fundamental principle in the preparation of financial statements. Therefore the auditor must take particular attention

Question 4 [20 marks] Going concern assumption is an important fundamental principle in the preparation of financial statements. Therefore the auditor must take particular attention of this assumption as he carries out his audit.

Required: a. What is going concern? (5) b. How does an auditor identify going concern factors and what is its effect on the audit on the audit report? (15)

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