Going concern

This topic has 1 reply, 2 voices, and was last updated 10 years ago by Ken Garrett.

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May 28, 2015 at 5:00 pm #249922
kasia
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Dear Sir,
In regards to going concern could you please explain to me what it means ‘adequate disclosure’?
The answer says ‘ If the disclosures are adequate then the audit report will be unmodified.
If the disclosure made by management are not adequate the audit report will need to be modified’.
May 28, 2015 at 5:09 pm #249928
Ken Garrett
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For example, if the client is negotiating a new loan to run from sometime in the new year, going concern could well depend on that, so that should be disclosed.
Adequate disclosure refers to any doubts that there might be about going concern.
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