crux of question — company has decided to close business in near future
If there is intention to close the business in near future, it is operational event or condition which create significant doubt over going concern. Auditor should perform additional procedure to determine whether such circumstances result into genuine / real material uncertainty over going concern and is going concern assumption valid.
if there is only material uncertainty but going concern is valid and there are adequate disclosures in financial statements– put it in separate para “Material Uncertainty Over Going Concern” + in KAM mention going concern as a point and give reference of going concern para (because it is always presumed that material uncertainty will be part of KAM para)
If in above case disclosure is not adequate — Qualify Audit Report + in KAM mention going concern as a point and give reference of basis of Qualification para (No separate going concern para as all details are covered in basis of qualification)
If in going is invalid , everything will be same as in CASE 2 , only we will have “basis of adverse” instead of “basis of qualification”
ICAI assumed case 1 and answered accordingly, i know as per question CASE 2 looks appropriate. We can give conditional opinion in such scenario and be conceptual correct as well as correct in exams.
So now with the new para i.e. “material uncertainty over going concern” and KAM, we don’t need to mention about going concern in emphasis of matter para again?