1. State the definition of the going concern concept. (2)

2. Why is it important to review the annual financial statements on the going concern basis? (3)

3. Briefly state the disclosure requirements for subsequent events for which nil adjustment is required at financial statement date, as per IAS 10 - Events after the reporting period. (3)

4. Should a material subsequent event occur after the date of the audit report, two potential difficulties arise. Explain.