- This topic has 7 replies, 3 voices, and was last updated 3 years ago by
.
- Posts
If management not agree to add disclosure in financial statement regarding uncertainties around going concern, we will give qualified opinion. In this case should we also need to add paragraph “material uncertaintiy relating to going concern” after the paragraph of “basis for qualified opinion”?
Or in this case we have no need for paragraph ” material uncertainty related to going concern” because we have already give qualified opinion?
See s.4 of chapter 24 – where it states “going concern issues are reported only ONCE in the auditor’s report”.
MURGC (adequate disclosure) and Qualified opinion (inadequate disclosure) are mutually exclusive – it’s either one or the other.
Hi Kim,
In s.4 of chapter 24 – where it states “going concern issues are reported only ONCE in the auditor’s report”, could you please tell us that
If the auditor had been worried about going concern but concludes that in fact, no material
uncertainty exists , there will clearly be no MURGC section, but it may be included as a KAM, if
it meets the definition of a KAM.#Can I include it as EoM paragraph, not in KAM for the no material uncertainty exist?
Regards,
CherryShort answer NO
Before MURGC, the auditor could draw attention to ADEQUATELY disclosed going concern uncertainty in an EoM. But MURGC is specifically the emphasis of the matter that is going concern – so EoM can no longer be used for going concern. (I hope you can appreciate that it would be confusing if two different paras could be used for the same thing!)If there is NO material uncertainty, there would be NO requirement for going concern disclosure … so NO note … so you couldn’t use EoM in any case – an EoM MUST be cross-reference to a note.
- The topic ‘Material uncertainty relating to going concern’ is closed to new replies.