3-2-2- The effect of liquidity on the continuity established
Continuity is one of the hypotheses of accounting where the continuity established means the entity's ability to
achieve its objectives, and thus continuing the conduct of their business, which is so unlike the concept of
financial failure, which means there is continuity, established and exit from the market, and the impact of the
controversy revolves around the possibility of the auditor in reporting failure financial, the Board of standards of
the International Auditing (IAASB) issued the International Standard on Auditing (ISA) No. (570) for the
imposition of continuity, where necessary this standard examination of the continuity established to determine
the extent of its ability to continuity, and by providing guidance on the responsibility of the auditor when
auditing reports Finance relating to the imposition of continuity.
other ways to make up the shortfall in liquidity, and going their daily activities by borrowing, or the issuance of
bonds, thus increasing the risk is greater, because facility will bear the cost of larger pay interest on the loans,
and the probability of failure the possibility of repayment of these loans in a timely manner, as well as lack of
liquidity leads to the loss of investment opportunities, and missed opportunities for cash discounts when you
buy, and the loss of the entity's ability to sell on credit liquidation of certain investments, and assets at an
inconvenient time. (Shawawrah, 2013, p50). All of these reasons, whether individually or combined entity could
lead to financial hardship may not be exceeded and ultimately lead to the failure of the facility and exit from the
market.