CAT / FIA FAU Syllabus E. Audit Completion - Going Concern Disclosures and Reporting - Notes 4 / 4
Going Concern Disclosures
If GC is appropriate
No need to mention GC in their report
If GC not appropriate - and not shown on break up basis
Qualify the audit report
(unless management agree to alter the financial statements )
If a Material Uncertainty over Going Concern:
Explain in Material Uncertainty on Going Concern paragraph. State opinion is not qualified.
Modify opinion if not explained properly by Management in the accounts
If NOT on Going Concern basis
Always refer to it in the report in an ‘emphasis of matter’ paragraph
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Going Concern Review & Indicators
Syllabus E. Audit Completion
E1. Going concern
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Management Representations
Syllabus E. Audit Completion
E2. Written representations