Going Concern and Significant UncertaintGoing Concern and Significant Uncertainties

Going Concern and Significant Uncertainties

87 In certain circumstances, an emphasis of matter paragraph may be added to a review report, without affecting the auditor’s conclusion, to highlight a matter that is included in a note to the interim financial report that more extensively discusses the matter. The paragraph would preferably be included after the conclusion paragraph and ordinarily refers to the fact that the conclusion is not qualified in this respect.

88 If adequate disclosure is made in the interim financial report, the auditor shall add an emphasis of matter paragraph to the review report to highlight a material uncertainty relating to an event or condition that may cast significant doubt on the entity’s ability to continue as a going concern.

89 The auditor may have modified a prior audit or review report by adding an emphasis of matter paragraph to highlight a material uncertainty relating to an event or condition that may cast significant doubt on the entity’s ability to continue as a going concern. If the material uncertainty still exists and adequate disclosure is made in the interim financial report, under paragraph 88 of this Auditing Standard, the auditor needs to modify the review report on the current interim financial report by adding a paragraph to highlight the continued material uncertainty.

90 If, as a result of enquiries or other review procedures, a material uncertainty relating to an event or condition comes to the auditor’s attention that may cast significant doubt on the entity’s ability to continue as a going concern, and adequate disclosure is made in the interim financial report, under paragraph 88 of this Auditing Standard, the auditor needs to modify the review report by adding an emphasis of matter paragraph.

91 If a material uncertainty that casts significant doubt about the entity’s ability to continue as a going concern is not adequately disclosed in the interim financial report, the auditor shall express a qualified or adverse conclusion, as appropriate. The report shall include specific reference to the fact that there is such a material uncertainty.

92 The auditor shall modify the review report by adding a paragraph to highlight a significant uncertainty (other than a going concern problem) that is adequately disclosed in the interim financial report, that came to the auditor’s attention, the resolution of which is dependent upon future events and which may materially affect the interim financial report.

93 If a significant uncertainty (other than a going concern problem) is not adequately disclosed in the interim financial report, the auditor shall express a qualified or adverse conclusion, as appropriate. The report shall include specific reference to the fact that there is such a significant uncertainty.