Zenos Limited is a large private company that manufactures special reinforced concrete and other products used in the construction of airport runways and heavy use motor vehicle freeways. During the course of the audit for the year ended 30 June 2020 the government announces it intends to scrap its proposed third runway project. You know that Zenos Limited's projections include a major share of the work expected to flow from this project. The company has been experiencing some cash flow difficulties, although this is not unusual in the industry. Management has recently fully extended their overdraft facility in order to pay day to day expenses such as wages and salaries. The partner is concerned that the company may be facing going concern problems, but the managing director maintains that future capital expenditure can be cut back to alleviate the going concern issue. In addition, surplus assets can be sold to the growing Asian market, and long-term debt rescheduled if necessary. Required: Give examples of three other possible mitigating factors that have not yet been mentioned. [6 MARKS] about the various a) b) What evidence should you obtain with respect to management's representation mitigating factors presented in the problem and identified in part (a) above? 16 MARKS] c) Assume that the engagement partner has decided to qualify the accounts on the basis of uncertainty as to going concern. However, the managing director argues that, as the company is privately held and all the shareholders are involved in the business, going concern problems should not be viewed as seriously as if it were a publicly listed company and therefore an unqualified report should be signed. How would t 13 MARKS] vou respond to the managing director's comments? d) on the audit if there was a letter of comfort from a related company promising What would be the impact. 15 MARKS] to provide financial support in the event that Zenos Limited was unable to meet its debt commitments?