Under SA 706 in the example of spicejet to explian “EMP” , auditor not qualify report just givr emphasis even the “going concern” was in danger. But under SA570, we study that in case of problem with going concern we should qualify or disclaimer our report? CONTRADICTION

1 answer

Ravi Staff April 12, 2017

In case of spice jet, going concern was not invalid , there were material uncertanity over going concern which was highlighted by EY. 
If manement is not willing to extend audit procedures then we qualify or go for disclaimer.

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