Management's Assessment

Question 1

What does IAS 1 contain?

Answer 1

A specific requirement that management makes an assessment of an entity’s ability to continue as a going concern

Question 2

What shall the auditor do?

Answer 2

Evaluate management’s assessment of entity’s ability to continue as a going concern

Question 3

What if assessment covers less than 12 months from the date of the FSs?

Answer 3

Auditor shall ask management to extend its assessment period to at least 12 months from that date

Question 4

What shall the auditor enquire from management?

Answer 4

Its knowledge of events or conditions beyond the period of the assessment that may cast significant doubt of entity’s ability to continue as a going concern

Question 5

What should auditor determine based on the audit evidence obtained?

Answer 5

A material uncertainty exists related to events or conditions may cast significant doubt on entity’s ability to continue as going concern