The Company has been unable to re-negotiate and obtain replacement findings. This Situation indicates the existence of material uncertainty in going concern, the company is not able to realize asset and discharge liabilities in ordinary course of business. FST don't disclose it. Then identify type of opinion…… In this case auditor know that going concern is inappropriate and management is still not disclose it so adverse opinion Dena chahiye but qualified opinion diya hai…. Why

1 answer

Ravi Staff September 24, 2018

in going concern answers it is always better to give conditional answer.
Material Uncertainty + Going Concern Appropriate — Not Adequate Disclosure in Notes to Accounts –> Qualify
Material Uncertainty + Going Concern Inappropriate — Give Adverse Opinion
 

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