Audit tests necessary to ascertain whether an entity is a going concern:

• Review management’s plans for future actions based on its going concern assessment.
• Gather additional sufficient and appropriate audit evidence to confirm or dispel whether or not a material uncertainty exists regarding the going concern concept.
• Seek written representations from management regarding its plans for future action.
• Obtain information from company bankers regarding the continuance of loan facilities.
• Review receivables ageing analysis to determine whether there is an increase in days, indicating cash flow problems.
  (5 points @ 1 mark each = 5 marks)