Your audit client, ABC Pty Ltd (ABC), has been assessed as having going concern problems due to a significant local customer (representing 60% of ABCs revenue) who has recently withdrawn their support of the business, as well as pressure from ongoing economic uncertainties in the Australian market, further impacting the clients cashflow.

ABCs Directors have indicated that they are currently disposing of some of their surplus assets to stimulate further cashflow, as well as exploring an extension to the due dates on their existing loan contracts, in order to alleviate the going concern issues.

a) Discuss the audit evidence that you would need to obtain for each of the two (2) mitigating factors indicated above.

b) Identify three (3) relevant additional mitigating factors that could be considered in relation to ABCs situation.