Page 111 - Auditinf Electronic System

• Evaluating the entity’s plans to deal with unfilled customer orders.
• Performing audit procedures regarding subsequent events to identify those that

either mitigate or otherwise affect the entity’s ability to continue as a going
concern.
• Confirming the existence, terms and adequacy of borrowing facilities.
• Obtaining and reviewing reports of regulatory actions.
• Determining the adequacy of support for any planned disposals of assets.
• Evaluating management’s plans for future actions may include:

✓ inquiries of management as to its plans for future action,
✓ and whether management’s plans are feasible in the circumstances,
✓ whether the outcome of these plans and actions is likely to improve the

situation including,
✓ for example, its plans to liquidate assets, borrow money or restructure debt,

reduce or delay expenditures, or increase capital.
✓ Requesting written representations from management and, where

appropriate, those charged with governance, regarding their plans for
future action and the feasibility of these plans.

Where management’s assumptions include continued support by third parties,
whether through the subordination of loans, commitments to maintain or provide
additional funding, or guarantees, and such support is important to an entity’s
ability to continue as a going concern, the auditor may need to consider
requesting written confirmation (including of terms and conditions) from those
third parties and to obtain evidence of their ability to provide such support

Forth phase: Documentation and Issuing the report Phase:
▪ Auditor must document all his risk assessment procedures that is related to

going concern or not and his evaluation of management mitigating actions if
any substantial doubt arouses about the firm ability to continue as a going
concern. Through his documentation of the audit process of the annual financial
statements

▪ Auditor Should issue the appropriate opinion in the audit report as Follows
according to his conclusions based on audit evidence gathered as follows:

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