What will be the manner of reporting under SA 570 (Revised) in audits of F.Y. 2017-18, where use of Going Concern Basis of Accounting in Financial Statements is appropriate, but a material uncertainty exists and adequate disclosure of Material Uncertainty is made in Financial Statements.
In the given situation, the section ‘Material Uncertainty Related to Going Concern’ may be included in the below cited manner:
“Material Uncertainty Related to Going Concern
We draw attention to Note XX in the financial statements, which indicates that the Company incurred a net loss of ZZZ during the year ended December 31, 20X1 and, as of that date, the Company’s current liabilities exceeded its total assets by YYY. As stated in Note 6, these events or conditions, along with other matters as set forth in Note XX, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.”