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Dear Sir,
Could you please help me in the going concern aspect,where should I use the terms qualified,adverse and disclaimer of opinion.
Example in Dec 2014,In Mcq’s 12th one Where the use of the going concern assumption is inappropriate the auditor should include a qualified opinion in the audit report.But the answer it is adverse opinion as the matter is material and pervasive.How do we know that?????
Pinky
If the GC assumption is inappropriate then the FS should have been drawn up on a break-up basis. The FS are therefore pervasively misstated so an adverse opinion is appropriate.
If there were merely doubt about GC and no note had been included in the FS, the auditors would qualify because only a note was missing – which would not be pervasive.
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