Abstract

The imposition of continuity is considered as one of the basic estimations In the preparation of financial statements . the imposition means looking at the company as continuing in its activity in the near future , and the company is not obliged m and it has no intention , to liquidate or reduce the size of its business or looking for ways of protection from creditors according to the laws or regulations . the auditor should examine the appropriateness of the management application the continuity imposition when preparing the financial statements , taking into account . if there is considerable doubt in the ability of the company to continue , it should disclose that in the financial statements , this study comes to shed light on the mechanism that should be followed by the auditor to reveal the company’s ability to continue .The study has been done in the southern public corporate for cement. The study aims to highlight the risks faced by the management in checking the company’s ability to the auditing standards and legislations m and to suggest a set of indicators to verify the imposition of continuity .the commitment of applying the requirements of the international auditing standard 570 on the public companies rovides the decision –maker with useful information about the continuity or lack of continuity of public sector companies in Iraq.The study has reached to a set of contusions the most important ones are : the importance of using the indicators of financial at analysis by the office of financial supervision , which are useful for predicting financial distress or bankruptcy cases for judging the company’s ability .there is no local audit manual for the imposition of continuity which contains the guidelines and procedures to be followed by the office of financial supervision, when there is suspicion or indicators that raise the question about the ability of the company to continue and embed this in the attached reports of the financial statements . The study has come up with a set of recommendation, the most important ones are liquidating the general company . for cement because its losses has accessed 75% according to the law of the general companies no . 22 for the year 1997 , providing a local audit guide for imposing the continuity which has the guidelines and procedures followed by the office of financial supervision when there is suspicion or an indicator that raises the question about the company’s ability to continue and embedding that in the attached reports of the financial statements .

DOI:10.52113/6/2016-6-2/1-509