Going Concern and Material UncertaintiesGoing Concern and Material Uncertainties (Ref: Para. A53‑A54)

###### Going Concern and Material Uncertainties (Ref: Para. A53‑A54) Use of going concern basis of accounting is appropriate 1. If adequate disclosure about the material uncertainty is made in the financial report, the auditor shall express an unmodified review conclusion and the auditor’s review report shall include a separate section under the heading “Material Uncertainty Related to Going Concern” to highlight a material uncertainty relating to an event or condition that casts significant doubt on the entity’s ability to continue as a going concern. This section shall: 1. Draw attention to the note in the financial report that discloses the matter; 2. State that the events or conditions indicate that a material uncertainty exists that may cast significant doubt on the entity’s ability to continue as a going concern and that the auditor’s conclusion is not modified in respect of the matter. 2. If a material uncertainty that casts significant doubt on the entity’s ability to continue as a going concern is not adequately disclosed in the financial report, the auditor shall: 1. Express a qualified or adverse conclusion, as appropriate; and 2. In the Basis for Qualified or Adverse Conclusion section of the auditor’s review report, state that a material uncertainty exists that may cast significant doubt on the entity’s ability to continue as a going concern and that the financial report does not adequately disclose this matter. Use of going concern basis of accounting is inappropriate 1. If the financial report has been prepared using the going concern basis of accounting but, in the auditor’s judgement, management’s use of the going concern basis of accounting in the preparation of the financial report is inappropriate, the auditor shall express an adverse conclusion.