Question
Client has breached debt covenants; lender issued waiver
valid for 9 months after balance sheet date. Auditor notes liquidity support from group company but no formal commitment. What should auditor conclude?Solution
SA 570 requires auditor to evaluate going concern for at least 12 months. Waiver for 9 months leaves uncertainty. With no formal support, a material uncertainty exists; adequate disclosure + a separate paragraph is required, not adverse/disclaimer unless disclosures inadequate.
Statements: Some giraffe are zebra.
All zebra are kangaroo.
Conclusions: I. Some gir...
Statements: Some cow are bull.
All bull are sheep.
Conclusions: I. All bull are cow.
...
In the question below, there are two conclusions followed by three statements in the options. You have to take the three given statements to be true ev...
Statements:
All Word are Number
No Alphabet is Letter
No Number is Alphabet
Conclusions:
I. All Letter is being...
Statements: All chocolates are ice-creams.
All ice-creams are toffees.
All toffees are cold-drinks.
...
Statement:
Only a few Genes are DNA
Only DNA are RNA
No RNA is Protein
Conclusion:
I. No Gene is Protein
II. S...
In the question below some statements are given followed by two conclusions I and II. You have to take the given statements to be true even if they see...
Select the letter-cluster from among the given option that can replace the question mark (?) in the following series.
Q – 23, S – 25, U – 2...
Statements: All rollers are coasters.
Some swings are rollers.
All bridges are swings.
. Conclusions: I. All coasters being swing...
In the question below some statements are given followed by three conclusions I, II and III. You have to take the given statements to be true even if ...
