When questions arise on the appropriateness of the going concern assumption, some of the normal audit procedures carried out by the auditors may take on an additional significance. Auditors may also have to carry out additional procedures or to update information obtained earlier. The ISA lists various procedures which the auditors shall carry out in this context.
Which of the following is not included in the list of additional audit procedures that are to be carried out by the auditor?
A . Assess the financial ability of such parties to provide additional funds
B . Inquire of the entity’s lawyer regarding litigation and claims
C . Evaluate management’s plans for future actions based on its going concern assessment
D . Confirm the existence, legality and enforceability of arrangements to provide or maintain financial support with related and third parties
Answer: C