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1. 26/07/22
The impact of
Covid 19 on Audit
Part 2

2. 26/07/22
Going concern is an
accounting term for a
company that is
financially stable enough
to meet its obligations and
continue its operation.

3. 26/07/22
Some considerations for
auditors include:
• The company’s liquidity
over the duration of Covid-
19 and after

4. 26/07/22
Some considerations for
auditors include:
• Any breach of financing
terms

5. 26/07/22
Some considerations for
auditors include:
• Deferral of financing
repayments and

6. 26/07/22
Some considerations for
auditors include:
• The use of available
government subsidies and
other support

7. 26/07/22
Some considerations for
both companies and their
auditors include:
• The impact of Covid-19
in the overall operations of
the company

8. 26/07/22
The financial statements
should not be prepared on
a going concern basis
where events after the
reporting date indicate
that the going concern
assumption is no longer
appropriate.

9. 22/07/22
If management concludes that the
going concern basis is appropriate,
but it is aware of material
uncertainties related to events or
conditions that may cast
significant doubt upon the entity's
ability to continue as a going
concern, it should disclose :

10. 26/07/22
● those uncertainties;
● management’s plans to
deal with these events or
conditions

11. 26/07/22
that there is a material uncertainty
related to events or conditions that
may cast significant doubt on the
entity’s ability to continue as a
going concern and, therefore, that
it might be unable to realise its
assets and discharge its liabilities
in the normal course of business.