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Aditya ParwalAditya Parwal asked 12 months ago

In Situation where Disclosures are adequate and when there exists Material Uncertainty ,
How Auditor can also  express Qualified Opinion  , Why not ALWAYS Adverse Opinion ?
( Material Uncertainty is a big issue )

1 Answers
RaviRavi Staff answered 12 months ago

Material Uncertainty means there is significant doubt over going concern it depends on happening or non-happening of future event.
Uncertainty are so big that it is important to disclose this to all stakeholders.
SA 570, says that material uncertainty should be given importance and they should be disclose notes to accounts adequately.
Till the time, company is disclosing it properly notes to accounts they are not at fault and we should not qualify our opinion. we should simply highlighted by putting section material uncertainty over going concern.
No, need to express qualified opinion or adverse opinion as going concern is not valid and management is not at fault.
When going concern invalid and management not doing proper adjustment than we have to give adverse.
Team AG. 

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