Page 108 - Auditinf Electronic System

Seventh: Auditing Standards Governing auditor responsibilities
related Going concern

Auditing Standards Related to Going Concern

ISA570 EAS 570 SAS 59

International standards of auditing Egyptian auditing standards Statements on Auditing Standards

Eights: The roles of auditor regarding going concern on the external
audit process according to current standards

Second Phase Planning the audit process:
A-Understanding the client:

The auditor must fully understand his client industry, and it`s related
constrains, and opportunities, to determine any probable events related to the client
industry that may affect his clients` firm ability to continue as a going concern

B-Assess Risk of material misstatement:

The auditor uses the understanding of the client’s industry and business
strategies, as well as the effectiveness of controls, to assess the risk of material
misstatements in the financial statements. while performing traditional risk
assessment procedures, the auditor shall consider whether there are any events or
conditions that may cast significant doubt on the entity’s ability to continue as a
going concern whether individually or collectively &management’s plans to
address them &whether management’s plans are feasible in the circumstances.

Events or Conditions That May Cast Doubt about Going Concern
Assumption are

Financial

▪ Net liability or net current liability position.

109

108

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