Audit Procedures relevant for Procedures for Doubt of Going Concern

Question 1

(Cash flow forecasts)

Answer 1

Analysing and discussing cash flow, profit and other relevant forecasts with management

Question 2

(interim FSs)

Answer 2

Analysing and discussing entity’s latest available interim financial statement

Question 3

(terms debenture loan)

Answer 3

Reading the terms of debentures and loana greements and determining whether any have been breached

Question 4

(minutes of meetings)

Answer 4

Reading minutes of meetings of shareholders, those charged with governance and relevant committees for reference to financing difficulties

Question 5

(entity’s lawyer)

Answer 5

Enquiring of entity’s lawyer about existence of litigation and claims

Question 6

(management’s assessment)

Answer 6

Reasonableness of management’s assessments of their outcome and the estimate of their financial implications

Question 7

(Confirming arrangements support)

Answer 7

Confirming the existence, legality and enforceability of arrangements to provide or maintain financial support with third parties

Question 8

(assessing ability)

Answer 8

Assessing the financial ability of third parties to provide additional funds