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Modified/ Unmodified report

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Modified/ Unmodified report

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarKen Garrett.
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  • November 9, 2016 at 5:33 am #348145
    Avatardiaz209
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Hello Sir, I am little bit confused on material uncertainty relating to going concern, and it is if directors prepare the financial statement on going concern basis when clearly company will not continue to operate into foreseeable future instead doing on break up basis then what opinion this would be..And they already disclosed the information on FS. Would this be modified ‘ except for’ or adverse opinion? Many Thanks.

    November 9, 2016 at 5:53 pm #348243
    AvatarKen Garrett
    Keymaster
    • Topics: 10
    • Replies: 10656
    • ☆☆☆☆☆

    If the company has clearly no hope of surviving, the FS should be on a break-up basis. If prepared as going concern this would be a pervasive misstatement and would be given an adverse opinion.

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