6. With reference to working paper X001:

Describe the substantive procedures that you will perform as part of your going concern assessment to obtain audit evidence about RAPSs ability to continue as a going concern for the foreseeable future.(18)

Note: As indicated, exclude substantive procedures to audit the forecast, as they have already been completed.

Communication skills layout and structure and appropriate style(2)

Based on the assessment of risk of material misstatement, it was deemed necessary to assess the going concern of RAPS. The board of directors is quite confident that the company will overcome its losses and that the new e-commerce platform will generate a significant stream of income for the company. All the business dealings concluding the implementation of the new line of business have been agreed upon. The delivery of products is outsourced to Bingo (Pty) Ltd, which will be paid an agreed-upon monthly fee. The e-commerce platform will launch on 1 December 2023, just in time for the festive period. On request, the following information and documentation were made available, which you will use to assess the going concern assessment: 1. Forecast of RAPS for the next three years, prepared by Samuel Mashaba (CFO). (Note that you have already performed substantive procedures on the forecast.) 2. Management's assessment of the going concern of RAPS. 3. In relation to the new e-commerce platform, you received the following: - the business plan, which was prepared by an external business analyst, setting out the market research, marketing strategies that will potentially lead to a growth of 10% in sales, and the financial projections for the project - the contract between RAPS and Bingo (Pty) Ltd