You are an audit associate of KEP Assurance LLP performing the audit for ABC Pte Ltd

1. Ethical dilemma you face in relation to ABC Pte Ltd’s going concern uncertainty disclosure:

Auditors should consider going concern indicators and their impact on a particular audit when:assessing risk at the planning stage of the audit, and when re-assessing risk as the audit progresses and performing audit procedures to respond to the assessed risksevaluating and concluding on the results of audit procedure, and forming an audit opinion. Paragraph A3 of ISA 570 provides good examples of financial, operational and other indicators which may individually or collectively cast significant doubt on the entity’s ability to carry on as a going concern. This is where the auditor’s judgement is critical as it is not conclusive that one or more of these items always signifies that a material uncertainty exists.

B ) Potential overstatement of non-current assets if impairments caused by reduced market value or value in use have not been recognised

Potential overstatement of inventory if net realisable value has fallen due to reduced demand..

C ) Analysing and discussing cash flow, profit and other relevant forecasts with management

Reviewing the terms of loan agreements and determining whether they have been breached

Reading minutes of board meetings and relevant committees for any discussion of financing difficulties...