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Hi sir,
There is a circumstance that going concern basis used but appropriateness dependent upon some significant uncertainty which is either not disclosed at all or inadequately disclosed.
Its report implication is qualified opinion on grounds of disagreement, probably adverse opinion rather than except for.
I am wondering why it is an adverse opinion rather than a disclaimer opinion.
Thanks
Disclaimer relates to uncertainty within the view shown by the financial statements
In the situation that you have outlined, the bone of contention is not the uncertainty of the entity’s ability to continue as a going concern.
The problem here is a problem of disclosure and a failure to disclose the potential uncertainties is a fundamental omission – it’s pervasive, and it therefore must lead to an adverse opinion
OK?
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