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Hi Sir Mike!
Just want to clarify, if the going concern problem is material and will probably lead to company failure FS prepared on a break-up basis and appropriately disclosed: use EOM
If material uncertainty related to going concern appropriately disclosed but FS does not need to be prepared on a break-up basis: use MURGC as material uncertainty is material and does not warrant a modified opinion and will not lead to immediate company failure.
If material uncertainty related to going concern not appropriately disclosed and not prepared on break-up basis contrary to auditor’s beliefs: qualified or adverse depending on auditor’s professional judgement– probably adverse as
it should be prepared on a break-up basis.Am I right?
Thanks!
KyleI understand both EOM and MURGC can have a modifed report but inclusion of both will ‘not cause modification’ in the opinion. So how do we choose between these two effectively with regards to going concern?
Thanks!
KyleFirst two scenario correct but the last one … auditor disagrees with the presentation / disclosure but if it’s only a material uncertainty then that’s not going to be a qualification on going concern grounds
It WILL be a modified audit opinion but only on the grounds of presentation / disclosure together with the auditor including a material uncertainty paragraph
OK?
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