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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Going concern
Dear Sir,
In regards to going concern could you please explain to me what it means ‘adequate disclosure’?
The answer says ‘ If the disclosures are adequate then the audit report will be unmodified.
If the disclosure made by management are not adequate the audit report will need to be modified’.
For example, if the client is negotiating a new loan to run from sometime in the new year, going concern could well depend on that, so that should be disclosed.
Adequate disclosure refers to any doubts that there might be about going concern.