QUESTION 1 You are the audit manager assigned to the audit of All Waste Ltd (AW) for the year ended 31 December 2017. The company is a family-run business and operates in North Leinster. It commenced operations in January 2014 and currently services over 15,000 domestic customers and over 2,000 commercial customers. It is early May 2018. You are about to review the audit work in relation to the year ended 31 December 2017, in advance of meeting with the audit partner at the end of the week. The audit senior has documented the following matters for your attention: 1. The company has historically been in a permanent overdraft situation and the budget for the 2018 calendar year indicated a continued requirement for the overdraft. However, the current overdraft facilities are due to expire at the end of June 2018 and AW has not yet managed to renegotiate them, due to stricter controls and requirements having been brought into their bank's processes since the last renewal date. If an overdraft cannot be arranged, AW may not be a going concern. However, management is confident that a renewal will be negotiated. 2. As part of audit testing on service fee income, it was noted that approximately 120,000 was received in respect of the 2018 calendar year during the period under review. The audit junior documented that this has been recorded as revenue for the year ended 31 December 2017.