Metro-Goldwyn-Mayer expects audit report next week

* Sources say they expect a going concern rating

* Source cites interest by Qualia

By Sue Zeidler

LOS ANGELES, July 9 (Reuters) - Results of a key independent audit of Metro-Goldwyn-Mayer are due next week and sources expect it to show that the troubled studio is financially sound enough to continue operating.

MGM, which is scrambling to refinance $3.7 billion in debt, had said results of an audit, conducted by the Bank of Montreal (BMO.TO) beginning in June, are due around July 14.

Two sources familiar with the studio, home to the James Bond franchise, said they expect MGM will be deemed a "going concern," implying that it can continue operations in the foreseeable future.

A source familiar with the studio said there was no reason to believe MGM would not get the going concern status, based on its rich library valuation.

The source said its film and TV library operations generated about $500 million in cash flow in its latest fiscal year ended March 31, down about 5 percent from a year earlier.

MGM declined to comment.