subsequent event:

definition

responsibilities of the governance who charge the  management of the entity

responsibilities of auditors

signigficant concept of going concern:

definition: the entitiy will continue to do business in foresee future at least 12month

need for going concern reviewst

the fundamential princinple of FR is all the financial statement are prepared on going concern basis, unless is told the revise one.

going concern   the business will continue in the foresee future, in UK is regard to at least 12month from the date the financial statement is presented 

break up basis: there are non current asset

there are uncertainties over going concern, prepare the FS on going concern basis , but in the note appropriate represent the situation the entity faced.

insolvent : net liability/net current liability 

cash run out: borrowing facilities refused, cannot borrow

trade difficulty: trade term be refused / limited, lost biggest customer, major litimation 

procedures:

inspect: forecast, loan aggreement

assess: relationship with lender,cusomer, supplier,...

perform sensbility analysis on the forecast, the worst/worse situation result to compare with 

obtain managerment representation that they believe they are a going concern