Audit opinion - Going concern

Question 1

If the business is a going concern and there are no material uncertainties

Answer 1

• Unmodified opinion
• Nothing to report in “Conclusions relating to GC” para

Question 2

If the business is not a going concern, on what basis should the FS be prepared on and any disclosures?

Answer 2

Breakup basis, appropriate disclosures made

Question 3

If the business is not a GC, it is prepared on breakup basis and disclosures need to be made. What if the disclosures made are not done correctly?

Answer 3

No misstatement / unmodified opinion, but

GC “fundemental to users’ understanding” AND
Emphasis of Matter needs to be included

Question 4

Why does the auditor obtain written representations from the directors of the audited entity? (3)

Answer 4

• Management has fulfilled its responsibilities
• Management have made available all information relevant
• Management confirm that all transactions have been recorded in the FS