Audit procedures to determine whether Techno Ltd is a going concern may include:

Explanation:

Review financial statements and management's forecasts to assess liquidity and solvency.

Perform analytical procedures, assess financing ability, evaluate contracts, and consider legal issues.

Reviewing the financial statements and management's forecasts to assess the company's liquidity and solvency.

Performing analytical procedures to identify trends and fluctuations in financial data.

Assessing the company's ability to obtain financing or restructure its debt.

Evaluating the company's current contracts and potential for new business.

Considering any legal or regulatory issues that may impact the company's financial position.

Step $2$

b$)$ Audit procedures when Techno Ltd is unlikely to be a going concern:

Qualify the audit report by expressing a doubt about the company's ability to continue as a going concern.

Consider the implications of the qualification on the financial statements, including the need to recognize impairment losses or disclose contingencies.

Communicate the qualification and its implications to management and those charged with governance.

Consider the need to modify the audit opinion on the company's ability to continue as a going concern in subsequent periods.

Explanation:

Express doubt about Techno Ltd$\text{'}$ s ability to continue as a going concern in the audit report.

Consider the impact on the financial statements, communicate the qualification to management, and evaluate the need for modified opinions in subsequent periods.

Step $3$

c$)$ Negative assurance and its difference from the assurance provided by an audit report on statutory financial statements:

Negative assurance is a form of limited assurance engagement where the auditor expresses no opinion on the truth and fairness of the financial statements. Instead, the auditor provides a conclusion that there are no material modifications that should be made to the financial statements for them to be in accordance with the applicable financial reporting framework.

In contrast, an audit report on statutory financial statements provides a positive assurance engagement where the auditor expresses an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the applicabe financial reporting framework.

Explanation:

Negative assurance is a limited assurance engagement where the auditor concludes there are no material modifications needed, while an audit report on statutory financial statements provides positive assurance with an opinion on the fair presentation of financial statements. The difference lies in the level of assurance provided and the nature of the conclusion reached by the auditor.

Step $4$

d$)$ Draft independent auditor$$s report:

Dear Shareholders,

We have audited the financial statements of Techno Ltd for the year ended December $31,2021.$ Based on our audit, which was conducted in accordance with auditing standards generally accepted in our jurisdiction, and our review of management's forecasts and projections, we are unable to provide a positive assurance report on the company's ability to continue as a going concern.

The company's financial difficulties, including falling income due to adverse publicity from court cases and loss of clients, as well as a lack of investment in new analysis machines and the departure of a senior.

Explanation:

The cash flow forecast prepared internally shows Techno Ltd requiring significant additional cash within the next $12$ months to maintain even the current level of services.

In light of these factors, we are unable to provide a positive assurance report on the company's ability to continue as a going concern. expound more