Aeneid Systems Ltd provides a range of IT services to clients from advice in helping identifying system weaknesses to helping procure new IT solutions to project managing new systems development and implementation. Recently Dido Carthage, Senior Project Manager, left the organisation to set up her own IT advisory business. Aeneid employed Ron Remus as her replacement.

There have been two very complex projects which have proved difficult for Aeneid to control and, as a result, the two clients involved sued Aeneid for breach of contract in failing to manage the projects successfully, resulting in the delivery of systems that were unable to perform the functions that were required. In both cases Aeneid has been found to be at fault and the clients have been awarded substantial damages. The adverse publicity in the industry, the amount of time Aeneid's management have spent fighting the cases and Ron Remus's inability to attract new clients has seen a substantial fall in revenue and cash flows. The budget for the coming year indicates additional bank financing will be required to keep the business operational.

Required

You are just about to complete the financial report audit of Aeneid Ltd.

a. Identify the procedures you would carry out to determine if Aeneid was a going concern.

b. What procedures are required to be performed if it is concluded that Aeneid is not a going concern?