Santosh ChoudharySantosh Choudhary asked 1 year ago

What are the main Implications of SA 570(Revised) for Auditor’s Report?

1 Answers
RaviRavi Staff answered 1 year ago

The main implications of SA 570(Revised) for Auditor’s Report are summarised below:
    S.N.                              Situation                                          

  1. Use of Going Concern Basis of Accounting in Financial Statements is inappropriate.

Ans:- Adverse opinion.
2. Use of Going Concern Basis of Accounting in Financial Statements is appropriate, but a material uncertainty exists. (2 cases)
a. Adequate disclosure of Material Uncertainty is made in Financial Statements.
Ans:- Unmodified opinion but a Separate Paragraph “Material Uncertainty Related to Going Concern” to highlight material uncertainty.
b. Adequate disclosure of Material Uncertainty is not made in Financial Statements.
Ans:- Qualified or Adverse opinion.

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