5. Consideration of going concern assumption underlying the financial statements preparation and presentation remains visibly an important task during the external audit. International Financial Reporting Standards (IFRS) require that financial statements are prepared on a going concern basis unless management intends to liquidate the entity or to cease operations or has no realistic alternative but to do so. When an entity does not prepare its financial statements on a going concern basis, IFRS requires disclosure of the basis used by the entity. Moreover, under IFRS, disclosures are required when management is reasonably aware of material uncertainties related to events and conditions that may cast significant doubt about an entitys ability to continue as a going concern or when the substantial doubt is alleviated as a result of consideration of managements plans. Required a. Clearly distinguish between the managements responsibilities and auditors responsibilities relating to going concern b. Set out any 2 financial conditions and 2 non-financial conditions that may cast doubt about the going concern assumption of management and clearly indicate how each of those conditions will impact on the entitys going concern c. Detail out any six procedures the auditor should perform following the identification of events that may cast doubt about the assumption that will enable him gather sufficient appropriate audit evidence in concluding on whether material uncertainty exists d. Describe how and why the following scenarios will impact on the auditors report (i) Where there is appropriate use of going concern but management has only made a single line statement of a material uncertainty that is concluded upon by the auditor. (ii) Where management has validly and actively refused to undertake financial-statements-wide assessment of its going concern status