Home forums ask acca tutor forums ask the tutor acca audit and assurance (aa) exams auditor's responsibilities with respect to going concern this topic contains 0 replies, has 1 voice, and was last updated by mansoor 3 years, 1 month ago. The auditor's responsibility 02 the auditor has a responsibility to evaluate whether there is substan- tial doubt about the entity's ability to continue as a going concern for a reason. Responsibilities, rather than including this material in the auditor's report, provided that the description on the website i s not inconsistent with the description of the auditor's responsibilities below. Define 'going concern' and discuss the auditor's responsibilities in respect of going concern (4 marks) going concern going concern means that the enterprise will continue in operational existence for the foreseeable future without the intention or necessity of liquidation or otherwise ceasing trade.
The audit committee members must be independent of management, and gain new responsibilities such as approving numerous audit and non-audit services, selecting and overseeing external auditors. Qualifications with respect to an auditor's opinion may be broadly classified into two categories those qualifications which relate to the scope of the examination, and those qualifications with respect to the fairness of presentation in accordance with generally accepted accounting principles consistently applied. Auditors play a role in a system of internal controls by performing evaluations and making recommendations for improved controls furthermore, every employee plays a role in either strengthening or weakening the institution's internal control system.
The auditor's liability they [arthur andersen] can never clear their name in the court of public opinion, they have been tried, convicted and hanged. The audit work performed in respect of going concern throughout the performance of the audit engagement and the conclusions reached by the auditor should be appropriately documented in the audit file. Auditor's responsibilities or the auditor's report and this is not prohibited by law or regulation, the auditor shall do so in a paragraph in the auditor's report, with the heading other matter, or other appropriate heading. Statement of directors' responsibilities in respect of the directors' report and the financial statements the directors are responsible for preparing the directors' report and the financial statements in. Which of the following best describes auditors' responsibilities with respect to evaluating the going-concern status of the entity a auditors are required to specifically gather evidence with respect to going-concern status and separately report on the entity's ability to continue as a going concern.
Responsibilities of management and the independent auditor over the audited financial statements the fundamental to a financial statement audit is the division of responsibility between management and the independent auditor. Isa (uk and ireland) 570 deals with the auditor's responsibilities in auditing the management's use of the going concern basis in the preparation of the accounts the clarified standard sets the objectives of the auditor's work and the specific requirements to fulfil. Auditors are required to consider evidence obtained during the audit that may provide information with respect to going-concern status and modify their report on the financial statements if substantial doubts exist. Address, among other things, the auditor's responsibilities with respect to evaluating the appropriateness of the company's methods and the reasonableness of management's assumptions used in the estimates and related disclosures, as well as the completeness and accuracy of company. New descriptions of responsibilities relating to going concern to be included in the respective sections for management's and auditor's responsibilities.
An external auditor performs an audit, in accordance with specific laws or rules, of the financial statements of a company, government entity, other legal entity, or organization, and is independent of the entity being audited. Audit committees combined code guidance, sir robert smith, 2003 application of the test with respect to each risk duties of directors and. Audit committee, in the real corporate world, has been existed for long time and the perception of its roles and responsibilities are evolved time-by-time. The auditor's responsibility under isa 570 is to obtain sufficient appropriate audit evidence about the appropriateness of management's use of the going concern assumption in the preparation of the financial statements, and to conclude whether there is a material uncertainty about the entity's ability to continue as a going concern. Governance environment in australia and promote understanding of and respect for the role of directors how the auditor's going responsibilities related to.
The general accounting office, the audit, evaluation and investigative arm of congress, exists to support congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the american people. Statements is adequate and a going concern section is included in the auditor's report for purposes of this illustrative auditor's report, the following circumstances are assumed: • audit of a complete set of financial statements of a listed entity using a fair presentation framework. The auditor's conclusion about the entity's ability to continue as a going concern should be expressed through the use of the phrase substantial doubt about its (the entity's) ability to continue as a going concern [or similar wording that includes the terms substantial doubt and going concern] as illustrated in paragraph 13. Responsibilities in respect of the preparation of financial statements the directors are responsible for preparing the financial statements in accordance with applicable law and regulations.
A key change in the revised isa 570 was expanded descriptions of management's and auditors' responsibilities regarding going concern in the auditor's report the iaasb's auditor reporting standards, including isa 570, are effective for audits of financial statements for periods ending on or after dec 15, 2016. • the role of internal auditors and audit committees although this guide's focus is the theoretical concept of the integrated internal control framework, we have also published a companion guide.
Internal auditors work within an organisation and report to its audit committee and/or directors they help to design the company's organising systems and help develop specific risk management policies. Going concern assumes that the company will operate in indefinite period of time there are i guess two ways to prepare the financial statement the first is preparing it in a going concern basis and the other one is liquidation mode basis liquidation basis is the opposite of going concern where in.