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GC Inadequately disclosed

Aasifrashid8y ago
Hi Mike, Could please clarify to me, when management inadequately disclosed material uncertainty related to Going concern. Is it not audit Opinion will be Modified and it will be explain in the Basis for Qualified Opinion paragraph rather than in MURGC But your answer to Jenny was have a question here relate to GC. so, if the client (listed company) has a clear going concern issue and it is material (i suppose all going concern issues are materials) what should we do on audit report : 1.when adequately disclosed ; 2. when inadequately disclosed by the management? please correct me if i am wrong: 1. i would add MURGC under basis of opinion before KAM and explain the uncertainty,make clear that management has fully disclosed and audit opinion is unmodified due to this respect. 2. i would also add MURGC under basis for opinion before KAM and explain the uncertainty, and make clear that the management has not disclosed in full details, and audit opinion is modified due to this respect. no explanation need under basis for opinion about the GC again because it has explained under MURCG section. Am i right on that please? Thanks Jenny Your answer That sounds good to me Jenny, yes
JJen8y ago#1
Dear Mike After few discussion on that. I am also confused. Please clarify! Would you explain on whether MURGC is needed when 1 inadequate disclosure and 2 didn't disclose it at all please? And where to explain the modification due to breach of IAS1? I thought it should be under MURGC, but a lot of people say it should be explained under basis paragraph. So it makes me wonder whether MURGC is needed at all on these 2 occasions. Thanks Jen
MikeLittleMikeLittleTutor8y ago#2
Adequately disclosed? MURGC paragraph immediately after 'basis' paragraph, before KAM paragraph and no modification Not adequately disclosed Or not disclosed at all? MURGC paragraph immediately after 'basis' paragraph, before KAM paragraph and modified opinion Normally, but not always, a going concern uncertainty will also be a KAM However, where the audit report includes a MURGC paragraph, the matter is not spelt out again in the KAM but would be referred to 'in passing' "In addition to the paragraph above concerning uncertainty re going concern, the following matters were also significant to the ..." I believe that that is correct! Does that resolve it?
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