Corsco is a large telecommunications company that is listed on a stock exchange.It is highly geared because,like many such companies,it borrowed a large sum to pay for a licence to operate a mobile phone network with technology that has not proved popular.The companiy's share price has dropped by 50% during the last three years and there has been several changes of senior management during that period.There's been considerable speculation in the press over the last six month about whether the company can survive without being taken over by a rival:

(a) Describe the external auditors responsibilities and the work that the auditor should perform in relation to the going concern status of companies

(b) Descrbe the possible audit reports that can be issued where the going concern status of a company is called into question;your answer should describe the circumstances in which they can be issued.

(c) On the basis of the information provided above desribe the audit report that you consider is likely to be issued in the case of Corsco,giving reasons

(d) Explain the difficulties that would be faced by Corsco and its auditors if Corsco's audit report made references to going concern,giving reasons