QUESTION $1$

$(25$ Marks$)$

$1\mathrm{.}1.$ Briefly explain why auditors are interested in the going concern ability of a company?

$(6$ marks$)$

$1\mathrm{.}2$ Where a company is required to disclose a going concern problem in its notes, what information should

$(3$ marks$)$

the note contain?

$1\mathrm{.}3.$ In terms of ISA $570($Revised$)-$ Going Concern, the adoption of the going concern basis of accounting in

$(3$ marks$)$

the preparation of the annual financial statements means $...?$

$1\mathrm{.}4.$ If a material uncertainty exists relating to the company's ability to continue as a going concern, can the

$(3$ marks$)$

going concern basis for the preparation of the Annual Financial Statements be adopted? Explain.

$1\mathrm{.}5.$ Is going concern an assertion? Discuss.

$(2$ marks$)$

$1\mathrm{.}6.$ What are the objectives of the auditor when conducting audit procedures relating to the going concern

$(4$ marks$)$ assumption?

$1\mathrm{.}7.$ If management $($the directors$)$ have already performed an assessment of their company's going concern

$(4$ marks$)$ ability, is it necessary for the auditor to perform an assessment of going concern? Justify.