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Does going concern is always a pervasive issue ?

0 Votes
Does going concern is always a pervasive issue ?

Guys, does going concern problem a material+pervasive issue or it can be only material ? I am having a problem with reporting whether can I give an "Except for" opinion.

March 25th 2015 AN ACCA USER 480 Points

4 Replies

+3 Votes

Going concern issue will be a pervasive issue when the entity has a material going concern problem which ought to be disclosed or in the auditors judgement the financial statements should be prepared on breakup basis because the entity will not be a going concern in the foreseeable future based on the evidence obtained by the auditor and management has disagreed on disclosing or preparing the financial statements on breakup basis, then the issue is Pervasive for the auditor to give an adverse opinion and not qualified opinion.

May 2nd 2015 AN ACCA USER 680 Points
Selected May 2nd 2015 AN ACCA USER
0 Votes
Thanks for your explanation.
May 2nd 2015 AN ACCA USER 480 Points
0 Votes
Olu your answerwas good, so Mahmood follow Olu's answer.
May 4th 2015 AN ACCA USER 760 Points
0 Votes

So long as the statements are not produced on a break up bases, It could be either. It depends on the sufficiency of evidence or the materiality of risk detected. If material and backed by sufficient evidence then a pervasive opinion is warranted. Without sufficient evidence, and non disclosure of key issues, then a qualified opinion could be raised.

May 16th 2015 AN ACCA USER 220 Points