Surbhi jainSurbhi jain asked 3 weeks ago

In CNO 112.20 me ..as per sa 701 to sirf disclosure ke lie hi bolta hai to for suggested me not sufficient kyu hai answer iska

3 Answers
RaviRavi Staff answered 3 weeks ago

Answer is provided by ICAI, we simply analysed it and gave appropriate headings.
I am personally not happy with the answer.
Scenario 1 
If going concern is invalid and company doesn’t shift to liquidation basis then adverse opinion should be given.
Scenario 2
If there is material uncertainty over going concern then seperate section “Material Uncertainty Over Going Concern” should be introduced and KAM section should simply have reference to MUGC section. 

RaviRavi Staff answered 3 weeks ago

This case fits in Scenario 1 but ICAI has taken it to scenario 2 and further treatment given to include it in KAM matter is also not appropriate.

RaviRavi Staff answered 3 weeks ago

I will mail it to ICAI BOS

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