Page 106 - Auditinf Electronic System

Appropriate Going Appropriate Going concern IN Appropriate Going
concern assumption assumption + substantial doubt concern assumption
doubt

Financial Financial Disclosures Financial
statement on statement on GC in Foot statement on
Notes Liquidation
GC basis basis
basis

fifth: Substantial Doubt about
Going Concern

Substantial doubt about an entity going concern are any conditions and
events, considered solely or in the aggregate, indicate that it is probable that the
entity will be unable to meet its obligations as they become due within one year
after the date that the financial statements are issued is any event that cast a material
uncertainty regarding the firm’s ability to continue in its operations as:

1. Significant recurring operating losses or working capital deficiencies.
2. Inability of the company to pay its obligations as they come due.
3. Loss of major customers, the occurrence of uninsured catastrophes such as

an earthquake or flood, or unusual labor difficulties.
4. Legal proceedings, legislation, or similar matters that have occurred that

might jeopardize the entity’s ability to operate.

Sixth: Auditor`s responsibility regarding going concern

The auditor responsibilities regarding companies going concern are:

(a) To obtain sufficient appropriate audit evidence about any events or conditions
that could raise substantial doubt (material uncertainty) on the entity’s ability
to continue as a going concern;

107

106

‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬