Page 166 - AAA Integrated Workbook STUDENT S18-J19
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Chapter 103 4
2.4 Financial statements disclosures
Disclosures relating to going concern are required to be made by the directors in the
following circumstances:
Material uncertainty over the future of the company
Where the going concern assessment has not covered a twelve month period
Where the financial statements are prepared on a basis other than the going
concern basis.
2.5 Reporting implications
The auditor should modify the audit opinion if the directors have not made adequate
disclosure of any material uncertainty related to going concern or if the directors have
not prepared the financial statements on the appropriate basis.
The auditor should modify the auditor's report without modifying the audit opinion if
the directors have appropriately disclosed going concern uncertainties or prepared
the financial statements on the break-up basis.
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