Smithson company is engaged in providing electronic services. The annual audit of the company is nearly complete. As a senior auditor you have found some financial difficulties for the client. The income of the company has fallen down due to adverse effect of high profile court cases against the client company. The court had found that the company had provided inferior services to the customers. As a result, a number of clients of the company withdrew their contract with the company. Also some senior officers too left the company saying that there is no enough cash flow to provide better services to the clients of the company. The cash flow forecast prepared internally in the company showed that the company required huge amount of cash to maintain their current level of services itself. Whereas the auditors of the company were asked to provide a unmodified opinion on the financial statements of the company. 1. State the auditor's responsibilities regarding the going concern of the client company. 2. Which type of events or conditions cast a significant doubt on the entity's ability to continue as a going concern.