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1) Does material uncertainty relating to going concern lead to modification of audit report ?
2) if break up disclosures are adequate should they be referred in Emphasis of matter paragraph ?1 The audit report is modified necause of the material uncertainties paragraph, but provided the notes to the FS contain adequate disclosure the FS show a true amd fair view so the audit opinion is not modified.
2 Material uncertainty does not mean break-up. Preparation of the FS on a break-up basis is used only if there is no realistic prospect of company survival. If there is a material uncertainty para,there is not apso an EoM paragraph relating to the same issue.
The second question isn’t related to the first one . Sorry for the confusion
2) if the financial statements have been adequately prepared on a break up basis since there is no realistic prospect of company survival and adequate related disclosures are made in the FS do we then refer to it in the EoM paragraph or KAM ?
3) If the management doesn’t provide access to books and records to the auditor but the auditor cannot resign due to legal restrictions why do we refer to it in the OM paragraph why can’t the auditors issue a disclaimer of opinion (modified opinion) ?
Thankyou for the help
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