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What is the answer of this question please anyone answer

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Laxman kumar

Laxman kumar

CA Final

4K+

20-Mar-21 09:54

17

Answers (3)

I believe this question relates to subject 'Auditing'. Please check SA 570 for the same - it has 3 factors mentioned therein.


Sahibdeep Singh

Sahibdeep Singh

Moderator

20-Mar-21 10:48

I believe this question relates to subject 'Auditing'. Please check SA 570 for the same - it has 3 factors mentioned therein.

Are those factors are financial,operational and others?


Laxman kumar

Laxman kumar

CA Final

4K+

20-Mar-21 10:54

Are those factors are financial,operational and others?

As per SA 570: Managementâ??s assessment of the entityâ??s ability to continue as a going concern involves making a judgment, at a particular point in time, about inherently uncertain future outcomes of events or conditions. The following factors are relevant to that judgment: â?¢ The degree of uncertainty associated with the outcome of an event or condition increases significantly the further into the future an event or condition or the outcome occurs. For that reason, most financial reporting frameworks that require an explicit management assessment specify the period for which management is required to take into account all available information. â?¢ The size and complexity of the entity, the nature and condition of its business and the degree to which it is affected by external factors affect the judgment regarding the outcome of events or conditions. â?¢ Any judgment about the future is based on information available at the time at which the judgment is made. Subsequent events may result in outcomes that are inconsistent with judgments that were reasonable at the time they were made.


Sahibdeep Singh

Sahibdeep Singh

Moderator

20-Mar-21 11:39