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“Material uncertainty exists and is adequately disclosed by management.”
sir just wanted to confirm this, in the above case we will be preparing the Financial statements on break-up basis right?
OR
material uncertainty can relate to other things too, apart from conventional threat to going concern assumption? and so in the above case we will prepare FSs on a normal going concern basis
I think auditor’s reports and audit opinions are well explained in the notes – so do please have a careful read of the chapters.
I think there is some misunderstanding on both your suggestions:
Uncertainty is uncertainty – break-up basis means “this is [de facto] not a going concern”.
The matter on which the auditor reports “MURGC” is material uncertainty related to going concern.
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