Required: Describe the substantive procedures you would preform regarding the appropriateness of the going concern assumption. In your answer, include general procedures as well as procedures in relation to the factorization of debtor's book (15 marks)

(40 MARKS) You are currently employed at ACS Auditors and are the Audit Senior on the audit of Cougar Limited. Cougar Limited's activities are all related to educational games for children ages 3 -9. All the games are developed by the entity in-house. The games are advertised online, therefore included in the business activities, are also the operation and maintenance of their website. Cougar Limited has a 31 December financial year-end and you are presently conducting the 2022 audit. The Financial Director of Cougar Limited provided you with an extract of the financial statements and he also expressed his concern about the decline in cash flows. The Financial Manager also mentioned to you that he raised his concern regarding the entity's ability to remain a going concern during a board meeting held on the 23rd of October 2021 . The board then decided to take the following actions to ensure the entity remains a going concern: - A portion of the debtor's book will be sold to a private Finance House in a debtor's factorisation transaction ( 75% of the book value of the specific debtors sold). The transaction will secure a cash inflow of R2.9 million by March 2022. - Cougar Limited is considering new services, resulting in new revenue streams, which could lead to an increase in entity profits. The following additional financial information of Cougar Limited is available: - Included in the actual current liabilities figure is a bank balance overdraft of R8 500 000. Increased overdraft facilities had been obtained during the financial year. - During the financial year a newspaper article was published indicating a possible copyright infringement claim. According to the newspaper articles and lawyers, a positive outcome of the court case is very important for the survival of the entity. - Cougar Limited is also struggling to pay its creditors on time and currently has more than half of its creditors outstanding for more than 120 days. This exceeds the agreed-upon terms of 30 days