Impact of Covid 19 on Going Concern in Audit - Part 1 #auditingduringcovid Read the full story in our blog https://lnkd.in/gY3V7MR4 𝐕𝐢𝐬𝐢𝐭 𝐮𝐬 Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru 𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲) An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients Website www.ktp.com.my Instagram https://bit.ly/3jZuZuI Linkedin https://bit.ly/3sapf4l Telegram http://bit.ly/3ptmlpn 𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲) A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients Website www.thks.com.my Facebook https://bit.ly/3nQ98rs

1. 25/07/22
The impact of
Covid 19 on Audit
Part 1
#AskKtpAudit

2. 25/07/22
Auditor wants to know
whether the company’s
going concern is
affected by COVID-19

3. 25/07/22
Going concern is an
accounting term for a
company that is
financially stable enough
to meet its obligations and
continue its operation.

4. 25/07/22
ISA 570 (Revised), Going
Concern, requires auditors:
(a) To obtain sufficient appropriate audit
evidence regarding, and conclude on, the
appropriateness of management’s use of
the going concern basis of accounting in
the preparation of the financial
statements;

5. 25/07/22
ISA 570 (Revised), Going
Concern, requires auditors:
(b) To conclude, based on the audit
evidence obtained, whether a
material uncertainty exists related
to events or conditions that may
cast significant doubt on the
entity’s ability to continue as a
going concern; and

6. 25/07/22
ISA 570 (Revised), Going
Concern, requires auditors:
(c) To report in accordance
with this ISA.

7. 25/07/22
Examples of
events and conditions that
may exist as result of
Covid-19:
• Loss of major market,
key customer(s), revenue,
labour shortages

8. 25/07/22
Examples of
events and conditions that
may exist as result of
Covid-19:
• Significant deterioration
in value of assets used to
generate cash flows

9. 25/07/22
Examples of
events and conditions that
may exist as result of
Covid-19:
• Delay in the launch of
new products or services

10. 25/07/22
Examples of
events and conditions that
may exist as result of
Covid-19:
• Foreign exchange
fluctuations

11. 25/07/22
Examples of
events and conditions that
may exist as result of
Covid-19:
• Counterparty credit risk

12. 25/07/22
Examples of
events and conditions that
may exist as result of
Covid-19:
• The entity’s solvency