International Audit Standard (ISA) 570 Going Concern addresses both management’s and the auditor’s responsibilities surrounding the Going Concern assumption.

1. Write an essay inclusive of an introduction, body and conclusion in which the following matters are addressed.

i) An explanation in your own words of what the Going Concern Assumption is.

ii) An explanation of the factors management is required to take into consideration when preparing the Going Concern note.

iii) Discuss the objectives of the auditor when assessing the going concern assumption.

iv) Identify, explain and give specific examples of two internal and two external indicators of doubt over the entity’s ability to continue as a going concern. Do not repeat the indicators mentioned in the session.

v) Construct the audit procedures you believe would be necessary to test the indicators you have identified above.