As we head into the next busy season for auditors, John Selwood considers your recent questions on going concern and offers some helpful tips.
The documentation should not just focus on management justifying use of the going concern basis – there also needs to be some attention to identifying any material uncertainties that cast significant doubt on the use of the going concern basis. Failure to identify these is the bigger risk in many audits.
When an auditor’s conclusion on going concern is that there is a material uncertainty, should the audit report include the usual conclusion paragraph as well as the material uncertainty.
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