... UncertaintiesDisclosurein the nancialstatementsisexpectedwhenmaterialuncertaintyexistsrelatedtoeventsorconditionsthat,aloneorinaggregate,maycastsignicantdoubton the entity’sabilitytocontinueasagoingconcern.Inevaluating the adequacyofsuchdisclosures,ISA570indicatesthat the auditorconsiderswhether the nancialstatements:a.Adequatelydescribe the principaleventsorconditionsthatgiveriseto the signicantdoubton the entity’sabilitytocontinueinop-erationandmanagement’splanstodealwiththeseeventsorconditions;andb.Stateclearlythatthereisamaterialuncertain-tyrelatedtoeventsorconditionswhichmaycastsignicantdoubton the entity’sabilitytocontinueasagoingconcernand,therefore,thatitmaybeunabletorealizeitsassetsanddischargeitsliabilitiesin the normalcourseof business. 20Forming the Opinion on the Financial Statements and the Implications for the Auditor’s ReportBasedon the auditevidenceobtained, the auditorconcludeswhethermanagement’suseof the goingconcernassumptionin the preparationof the nancialstatementsisappropriateanddetermineswhattypeofopinionistobeissuedin the circumstances.If the auditorconcurswithmanagement’sassessment,anunqualiedopinion ... ConcernItisimportantthatauditorscommunicatewithmanagementand,whereappropriate,thosechargedwithgovernanceearlyin the audittoobtainanunderstandingofhowmanagementintendstoassess the entity’sabilitytocontinueasagoingconcernandtoenable the auditortocommunicateanyeventsorconditionsrelatingto the goingconcernassumptionthathavealreadybeenidentiedduring the audit.Insomecases,managementmayhavealreadymadeapreliminaryassessmentthat the auditorwouldreviewwhenperformingriskassessmentprocedurestodeterminewhethereventsorconditionsrelatingto the goingconcernassumptionhavebeenidentiedandwhethermanagementhasplanstoaddressthem.Management’sassessmentof the goingconcernassumptioninvolvesmakingajudgment,ataparticularpointintime,about the futureoutcomeofeventsorconditionswhichareinherentlyuncertain.Wheremanagementhasmadeapreliminary“GoingConcern,”establishes the relevantrequirementsandguidanceandisdiscussedinmoredetailbelow.Management’sassessmentof the entity’sabilitytocontinueasagoingconcernisakeypartof the auditor’sconsiderationof the goingconcernassumption. The auditor’sresponsibilityistoconsider,whenplanningandperformingauditproceduresandevaluatingtheirresults, the appropriatenessofmanagement’suseof the goingconcernassumptionin the preparationof the nancialstatements.3 The auditorconsiders the appropriatenessofmanagement’suseof the goingconcernassumptionevenif the nancialreportingframeworkusedin the preparationof the nancialstatementsdoesnotincludeanexplicitrequirementformanagementtomakeaspecicassessmentof the entity’sabilitytocontinueasagoingconcern.4ISA570requires the auditortoconsidergoingconcernin the earlystagesof the audit(i.e.,whenplanning the auditandperformingriskassessmentprocedures)byconsideringwhetherthereareeventsorconditionsandrelated business riskswhichmaycastdoubton the entity’sabilitytocontinueasagoingconcern,andtoremainalertduring the auditforauditevidencetothiseffect.5 The auditorisrequiredtoevaluatemanagement’sassessmentof the entity’sabilitytocontinueasagoingconcern.6Wheneventsorconditionshavebeenidentiedwhichmaycastsignicantdoubtonanentity’sabilitytocontinueasagoingconcern,ISA570requires the auditortoconsiderwhethertheyaffect the auditor’sassessmentof the risksofmaterialmisstatementandto:a.Reviewmanagement’splansforfutureactionsbasedonitsgoingconcernassessment;b.Gathersufcientappropriateauditevidencetoconrmordispelwhetherornotamaterialuncertaintyexiststhroughcarryingoutauditproceduresconsiderednecessary,including3 ... Anyjudgmentabout the futureisbasedoninformationavailableat the timeatwhich the judgmentismade.Subsequenteventscancontradictajudgmentwhichwasreasonableat the timeitwasmade.• The sizeandcomplexityof the entity, the natureandconditionofits business and the degreetowhichitisaffectedbyexternalfactorsallaffect the judgmentregarding the outcomeofeventsorconditions.Materialuncertaintiesrelatedtoeventsandconditionsthatmaycastsignicantdoubton the entity’sabilitytocontinueasagoingconcernarerecognizedin the ISAsasauditmattersofgovernanceinterestthat the auditorshouldcommunicatetothosechargedwithgovernance.11However,itislikelyin the currentclimatethatmattersrelevantto the assessmentof the entity’sabilitytocontinueasagoingconcernarealreadybeingconsideredbythosechargedwithgovernance,atleastin the privatesector.Afailuretohaveconsideredrelevantissuesmayrepresentaweaknessingovernanceorriskmanagementprocedures,andmayleadtoinadequatelypreparednancialstatements.Degree...