A$.$ Identify whether the following statements concerning the responsibilities of auditors and management in relation to going concern are true or false.

a$.$ Management should assess whether the entity will continue in operation for the foreseeable future.

b$.$ Management should prepare financial statements on the appropriate basis.

$($c$)$ The auditor should consider the appropriateness of management's use of the going concern assumption in the preparation of the financial statements.

d$.$ The auditor should modify the audit opinion if they have identified going concern risk factors during the audit.

&B$.$ Identify whether the following factors, which you have noted at Strawberry, indicate a risk that Strawberry is not a going concern, or not.

a$.$ Major customer in trouble.

b$.$ Net cash outflows projected.

c$.$ Suppliers threatening legal action.

d$.$ No dividend proposed.

C$.$ Your audit assistant has made a series of statements concerning audit procedures relating to the going concern assumption:

Auditors should not analyse the company's cash flow forecasts as these are prepared by management so provide weak evidence.

It will be important to confirm that the receivable will not pay the balance with the customer directly.

We should review sales since April $20x2$ and review the order book.

It is necessary to inquire with the company's legal advisors whether any legal action has been entered into against the company.