Test Preparation on CA Intermediate Auditing and Assurance Test Series-14

Which of the below-mentioned indicators are classified as financial indicators that may cast doubt ongoing concern assumptions

Ziwggy Pvt. Ltd. incurred massive losses during the year. They were unable to pay debts to the financial as well as operational creditors of the company. The company is unable to finance itself by any other medium. The top management of the company is has left the company. The auditor of the company assessed that there is a threat to the going concern assumption and accordingly he has given the details of the same in Key Audit Matter Para of the report. State whether the contention of the Auditor is appropriate or not?

Which of the following operating conditions may cast doubt about going concern assumption?

1. Loss of KMP.
2. Uninsured or underinsured assets.
3. Shortage of Important Supplies.
4. Substantial Losses.

Which of the following financial Conditions may cast doubt about the going concern assumption?

1. Loss of KMP.
2. Discontinuation of dividend.
3. Deterioration in value of assets.
4. Substantial Losses.

Which of the following other Conditions may cast doubt about going concern assumption?

1. Non-compliance with statutory requirements.
2. Uninsured or underinsured assets.
3. Deterioration in value of assets.
4. Substantial Losses.