What are the auditor's responsibilities for 'going concern assumptions

(a) In order to make the accounting language convey the same meaning to all people and to make it more meaningful there are some Accounting concepts and assumptions which are usually followed. one of them is Going Concern assumption.

Going Concern Assumptions - As per this concept it is said that the business will continue to exist for a long period in the future. The tractions are recorded in the books of the business on the assumption that it is a continuing enterprise. It is on this concept that we record fixed assets at their original cost and depreciation is charged on these assets without reference to their market value.

For example, if a machinery-is purchased which would lust, say, for the next 8 years, the cost of this machinery will be spread over the next 8 years for calculating the net profit or loss of each year. Because of the concept of going concern the full cost of the machine would not be treated as an expense in the year of its purchase itself. The market value of the fixed assets is irrelevant and is not recorded in the balance sheet. as these assets are not going to be sold in the near future.