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FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES Question 5 (10 marks) at (b) You are the audit partner in Jason & Associates. Jason

image text in transcribed FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES Question 5 (10 marks) at (b) You are the audit partner in Jason \& Associates. Jason \& Associates have accepted a recent engagement for a retail company called, Food Co-op. You have obtained the Annual Financial Statements of Food Co-op and studied the opening balances. As part of the audit plan you have decided to place reliance on the work of the prior auditors. Explain what are the main procedures you would have to perform to place reliance on the work of the prior auditors, i.e. in this case the opening balances? (5) Page 17 of 25 FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES Assignment 2 Question 1 (10 marks) Answer the following short questions 1. State the definition of the going concern concept. (2) 2. Why is it important to review the annual financial statements on the going concern basis? (3) 3. Briefly state the disclosure requirements for subsequent events for which nil adjustment is required at financial statement date, as per IAS 10 - Events after the reporting period. (3) 4. Should a material subsequent event occur after the date of the audit report, two potential difficulties arise. Explain. (2)

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