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Explain the responsibilities of auditor and management regarding going concern?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/03/08
Aeisha Abdul Kader
by Aeisha Abdul Kader , Accountant / Professional Assistant , VM Apparel CC

Management is required to review the going concern ability of the company on an annual basis after evaluating the performance of the business. The auditor does not have an actual responsibility towards the going concern although he/she may be consulted in an advisory capacity. The only responsibility the auditor will have is to ensure that the audit plan takes into account the going concern of the client and audit procedures are adjusted accordingly. This responsibility is not towards going concern but towards the audit itself.

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