- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
- Posts
MikeLittle, Can you pleas help me understand what does “GC assumption appropriate, but
with Material Uncertainty” AND “GC assumption inappropriate” mean, so that I can understand the reporting technique.Thank you.
There is an underlying assumption that an entity is a going concern … until it’s proved differently
“GC assumption appropriate, but with Material Uncertainty” means that there is significant doubt about the ability of the entity to carry on into the foreseeable future with neither the intention nor the need significantly to curtail the scale of operations of the enterprise.
However, there is significant doubt
“GC assumption inappropriate” means that there is more than just significant doubt! No matter what the management may want to believe, it is the view of the auditor that this client is not a going concern
OK?
- The topic ‘Going Concern – Reporting’ is closed to new replies.