5 (a) Compare and contrast the responsibilities of management, and of auditors, in relation to the assessment ofgoing concern. You should include a description of the procedures used in this assessment where relevant.(7 marks)

题目

5 (a) Compare and contrast the responsibilities of management, and of auditors, in relation to the assessment of

going concern. You should include a description of the procedures used in this assessment where relevant.

(7 marks)

参考答案和解析

正确答案：
5 Dexter Co
(a) Responsibilities of management and auditors
Responsibilities
ISA 570 Going Concern provides a clear framework for the assessment of the going concern status of an entity, and
differentiates between the responsibilities of management and of auditors. Management should assess going concern in order
to decide on the most appropriate basis for the preparation of the financial statements. IAS 1 Presentation of Financial
Statements (revised) requires that where there is significant doubt over an entity’s ability to continue as a going concern, the
uncertainties should be disclosed in a note to the financial statements. Where the directors intend to cease trading, or have
no realistic alternative but to do so, the financial statements should be prepared on a ‘break up’ basis.
Thus the main focus of the management’s assessment of going concern is to ensure that relevant disclosures are made where
necessary, and that the correct basis of preparation is used.
The auditor’s responsibility is to consider the appropriateness of the management’s use of the going concern assumption in
the preparation of the financial statements and to consider whether there are material uncertainties about the entity’s ability
to continue as a going concern that need to be disclosed in a note.
The auditor should also consider the length of the time period that management have looked at in their assessment of going
concern.
The auditor will therefore need to come to an opinion as to the going concern status of an entity but the focus of the auditor’s
evaluation of going concern is to see whether they agree with the assessment made by the management. Therefore whether
they agree with the basis of preparation of the financial statements, or the inclusion in a note to the financial statements, as
required by IAS 1, of any material uncertainty.
Evaluation techniques
In carrying out the going concern assessment, management will evaluate a wide variety of indicators, including operational
and financial. An entity employing good principles of corporate governance should be carrying out such an assessment as
part of the on-going management of the business.
Auditors will use a similar assessment technique in order to come to their own opinion as to the going concern status of an
entity. They will carry out an operational review of the business in order to confirm business understanding, and will conduct
a financial review as part of analytical procedures. Thus both management and auditors will use similar business risk
assessment techniques to discover any threats to the going concern status of the business.
Auditors should not see going concern as a ‘completion issue’, but be alert to issues affecting going concern throughout the
audit. In the same way that management should continually be managing risk (therefore minimising going concern risk),
auditors should be continually be alert to going concern problems throughout the duration of the audit.
However, one difference is that when going concern problems are discovered, the auditor is required by IAS 570 to carry out
additional procedures. Examples of such procedures would include:
– Analysing and discussing cash flow, profit and other relevant forecasts with management
– Analysing and discussing the entity’s latest available interim financial statements
– Reviewing events after the period end to identify those that either mitigate or otherwise affect the entity’s ability to
continue as a going concern, and
– Reading minutes of meetings of shareholders, those charged with governance and relevant committees for reference to
financing difficulties.
Management are not explicitly required to gather specific evidence about going concern, but as part of good governance would
be likely to investigate and react to problems discovered.

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相似问题和答案

第1题：

48 Risk mitigation includes all but which of the following:

A. Developing system (policies, procedures, responsibilities)

B. Obtaining insurance against loss

C. performing contingent planning

D. developing planning alternatives

E. identification of project risks

正确答案：E

第2题：

________ with flying, taking the train is safer.

A、Compared

B、To compare

C、Comparing

D、Compare

参考答案：A

第3题：

Risk mitigation includes all but which of the following:

A Developing system (policies, procedures, responsibilities)

B Obtaining insurance against loss

C performing contingent planning

D developing planning alternatives

E identification of project risks.

正确答案：E

第4题：

材料：

It is not recommended that any person shall be allowed on the bridge or in the pilot house except the pilot and other representative of the canal，and master and such officers and other members of the crew of the vessel as may be necessary for its navigation and control，management，operation and safety．

Navigational aids are difficult to maintain and are reported to be unreliable in this waters．A considerable amount of shipping uses the canal and，in addition，many local fishing craft with nets may be encountered in the area. Since passage through the canal entails a run of more than 250 miles，long periods of considerable vigilance are necessary in order to maintain safe standards of navigation．

问题：

PILOT HOUSE is referred to ________ in this passage．

A.the cabin in which the pilot stays

B.the space which the rudder is located

C.the bridge of vessels

D.the cabin which is prepared for the pilot

SHIPPING is referred ________ in this passage．A.the operations of transportation of GOODs by sea

B.the procedures of marine transportation business

C.the management of marine transportation business

D.the vessels and ships

The person on the bridge or in the pilot house shall be those ________．A.who are recommended

B.who are familiar with the navigation．management．Operation and safety control

C.who are directly involved in the navigation，management，operation and safety control

D.who have nothing to do with the navigation，management，operation and safety control

The author implies that ________．A.even by making use of modern instrument it is difficult to maintain safety in this area

B.mariners should take it easy when navigating in this area

C.modern instrument should be used to control the safety of navigation in this area

D.it is dangerous when navigating in this area

请帮忙给出每个问题的正确答案和分析，谢谢！

问题 1 答案解析：C

问题 2 答案解析：D

问题 3 答案解析：C

问题 4 答案解析：D

第5题：

Whichtwostatementsaboutthebgpdeterministic－medandbgpalways－compare－medcommandsare true?()

A.Thebgpdeterministic-medcommandisusedtoinfluencetheBGProuteselectionprocesstocausethe MEDattributetohavehigherprecedenceovertheASpathlength

B.Thebgpalways-comparecommandisusedtoinfluencetheBGProuteselectionprocesstocausethe MEDattributetohavehigherprecedenceovertheASpathsystem

C.Enablingthebgpdeterministic-medcommandensuresthecomparisonoftheMEDvariablewhen choosingroutesadvertisedbydifferentpeersinthesameautonomoussystem.

D.Enablingthebgpalways-compare-medcommandensuresthecomparisonoftheMEDvariablefor pathsfromneighborsindifferentautonomoussystems.

E.Thebgpdeterministic-medandbgpalways-compare-medcommandsareenabledbydefult.

参考答案：C, D

第6题：

Honesty and hard work _______ to success and happiness.

A、help

B、contribute

C、bring

D、compare

参考答案：B

第7题：

Refer to Topic TestKing.com in iPAD document.What happens to the network when TestKingX is reconnected and a trunk exists between the two switches?()

A. All VLANs except the default VLAN will be removed from all switches.

B. All existing switches will have the students, admin, faculty, Servers, Management,Production, and no-where VLANs.

C. The VLANs Servers, Management, Production, and no-where will replace the VLANs on SwX.

D. The VLANs Servers, Management, Production, and no-where will be removed from existing switches.

参考答案：D

第8题：

166 Risk mitigation includes all but which of the following:

A. Developing system (policies, procedures, responsibilities)

B. Obtaining insurance against loss

C. performing contingent planning

D. developing planning alternatives

E. identification of project risks

正确答案：E

第9题：

材料：Navigation in the canal

It is not recommended that any person shall be allowed on the bridge or in the pilot house except the pilot and other representative of the Canal，and Master and such officers and other members of the crew of the vessel as may be necessary for its navigation and control，management，operation and safety．

Navigational aids are difficult to maintain and are reported to be unreliable in this waters．A considerable amount of shipping uses the canal and，in addition，many local fishing craft with nets may be encountered in the area.Since passage through the canal entails a run of more than 250 miles，long periods of considerable vigilance are necessary in order to maintain safe standards of navigation．

问题：PILOT HOUSE is referred to ______ in this passage．

A.the cabin in which the pilot stays

B.the space in which the rudder is located

C.the bridge of vessels

D.the cabin which is prepared for the pilot

SHIPPING is referred to ______ in this passage．A.he operations of transportation of goods by sea

B.the procedures of marine transportation business

C.the management of marine transportation business

D.the vessels and ships

The author implies that ______ ．A.even by making use of modern instrument it is difficult to maintain safety in this area

B.mariners should take it easy when navigating in this area

C.modern instrument should be used to control the safety of navigation in this area

D.it is dangerous when navigating in this area

The person on the bridge or in the pilot house shall be those ______ ．A.who are recommended

B.who are familiar with the navigation，management，operation and safety control

C.who are directly involved in the navigation，management，operation and safety control

D.who have nothing to do with the navigation，management，operation and safety control

请帮忙给出每个问题的正确答案和分析，谢谢！

问题 1 答案解析：C

问题 2 答案解析：D

问题 3 答案解析：D

问题 4 答案解析：C

第10题：

Hunter is a brilliant professor but has his limitations as a government leader.

A:capacities
B:weakness
C:advantages
D:responsibilities

答案：B

解析：

本句意思是：汉特是一位非常优秀的教授，但他作为一位政府领导人有他的缺点。句中limitation意为“缺点”，例如：He knows his limitations.他知道自己的能力有限。四个选项中：capacity意为“能力”，例如：China's grain production capacity has improved.中国的粮食生产能力提高了。weakness意为“缺点”，例如：There is an inherent weakness in the design.这设计本身存在缺点。advantage意为“优点”，例如：It is an advantage if you know how to type.如果你会打字，这就是一种优势。responsibility意为“责任”，例如：You can't retreat from the responsibility in this affair．你不能回避在这一事件中的责任。只有选项B同句中画线单词含义接近。

5 (a) Compare and contrast the responsibilities of management, and of auditors, in relatio

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