A review of financial statements includes consideration of the entity's ability to continue as a going concern. If, during the performance of the…

As per SRE 2400,“Engagements to Review Historical Financial Statements", a review of financial statements includes consideration of the entity's ability to continue as a going concern. If, during the performance of the review, the practitioner becomes aware of events or conditions that may cast significant doubt about the entity's ability to continue as a going concern, the practitioner shall: (i) Inquire of management about plans for future actions affecting the entity's ability to continue as a going concern and about the feasibility of those plans, and also whether management believes that the outcome of those plans will improve the situation regarding the entity's ability to continue as a going concern. (ii) Evaluate the results of those inquiries, to consider whether management's responses provide a sufficient basis to: - (1) Continue to present the financial statements on the going concern basis if the applicable financial reporting framework includes the assumption of an entity's continuance as a going concern or (2) Conclude whether the financial statements are materially misstated or are otherwise misleading regarding the entity's ability to continue as a going concern. (iii) Consider management's responses in light of all relevant information of which the practitioner is aware as a result of the review.