ANSWER ASAP URGENTTT

Sutera Sdn Bhd (Sutera) provides scientific services to a wide range of clients. Typical assignments range from testing food for illegal additives to providing forensic analysis on items used to commit crimes to assist law enforcement officers.

The annual audit is nearly complete. As the audit senior, you have reported to the engagement partner that Sutera is undergoing some financial difficulties. Income has fallen due to the adverse effect of two high-profile court cases, where Suteras services to assist the prosecution were found to be in error. This has led to adverse publicity to Sutera. As the result, a number of clients cancel their contracts. A senior employee then left Sutera, stating lack of investment in new analysis machines was increasing the risk of incorrect information being provided by the company.

Required:

(a) Discuss the auditors responsibilities in respect of going concern. (2 marks)

(b) State FIVE (5) audit procedures that may be carried out to try to determine whether or not Sutera Sdn Bhd is a going concern. (5 marks)

According to PwCs Global Economic Crime and Fraud Survey-Malaysia Report: The top four most disruptive or impactful incidents of fraud experienced by Malaysian organisations in the last two years are asset misappropriation (16%) ,bribery and corruption(18%) ,customer fraud (20%),and cybercrime (16%).

Required:

Critically discuss on the responsibilities of auditor relating to fraud in an audit of financial statements. You are required to state the relevant authorities to support your comments. (5 MARKS)