Evaluate The Nature, Purpose And Scope Of An Audit And The Legal, Regulatory And Ethical Framework For Auditing: Audit & Assurance Assignment, TCD, Ireland

Module learning outcomes assessed in this assignment:

1. Evaluate the nature, purpose and scope of an audit and the legal, regulatory and ethical framework for auditing

2. Distinguish between the respective roles and responsibilities of directors and internal and external auditors

3. Demonstrate how the auditor obtains and accepts audit engagements and conducts a detailed investigation into an audit client to identify the risks of material misstatement (whether arising from fraud, error, or other irregularities)

4. Analyze how subsequent events review and going concern assessment informs the conclusions in the auditor’s report

REQUIREMENT:

Given the very volatile and uncertain business environment that currently exists, you are required to write an essay that critically assesses whether or not it is appropriate to ask auditors to make going concern judgements about their clients, at this time.

Your assessment should include the following information:

1. Explain the Going Concern concept and its impact on the financial statements. Include a description of the responsibilities of management and auditors in relation to the assessment of a company’s going concern status.

2. Provide an example of one industry that has suffered during the pandemic, and analyse the risks the current economic and social conditions created by the virus and government responses to Covid-19, pose to the going concern status of companies in that industry.  

3. Evaluate what government and company directors should and are doing to help the companies.

4. Critically assess how the situation creates difficulties for the auditor in assessing a clients’ going concern status and advise how the auditor can overcome the difficulties.