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7:20 Anbar Version 1 Question 4 Al Maza Company is one of the leading investment firm in Oman They have investment in portfolio nationally and

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7:20 Anbar Version 1 Question 4 Al Maza Company is one of the leading investment firm in Oman They have investment in portfolio nationally and internationally. You have been appointed as the chief auditor in this company last year. Management of the company have been cooperating with you to get required audit evidence. You identified that one of the companies American customer sued the company for 1.5 million RO for a breach of contractual obligation. The case is still pending under a court in New York. You found something messy, but management did not divulge any further information to you. When you evaluated the portfolio of the company, you found that the value of company's investment portfolios are less than its cost due to the international cconomic slowdown. This is reflecting in their current years caring also. You enquired the management and finance director about this, they could not chart a plan to get out of this crisis. Even if management did not get you the evidence, you have collected all required evidence through third parties. Now it is the time for you to compile all the audit evidence to express your audit opinion. When you and your team evaluated the audit evidence, you found that the company is prepared its financial statement by following the rules and regulation applicable. Even at the time of final assessment and critical evaluation of audit evidence, you could not find any material misstatement in the financial statement prepared by the company You are required to:- 1. Why does an auditor must assess the ability of the firm to continue as going concern? Can you consider the report given by the auditor in this regard as an absolute guarantee for companies ability to continue as going concern? Give reason for your answer (5 Marks) 2. Are you able to find any threat for this company to continue as going concem? You can write more than one if applicable. Give reason for your

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