What is the responsibility of auditors regarding going concern opinion?

The auditor’s responsibility under ISA 570 is to obtain sufficient appropriate audit evidence about the appropriateness of management’s use of the going concern basis of accounting in the preparation of the financial statements, and to conclude whether there is a material uncertainty about the entity’s ability to …

What is the responsibility of the management regarding going concern?

As part of the preparation of the financial statements, management is responsible for Aassessinging the Company’s ability to continue as a going concern, and whether the use of the going concern basis of accounting is appropriate, as well as disclosing matters related to going concern., including whether the use of the …

What is the auditor’s responsibility when there is a substantial going concern issue?

The auditor has a responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern for a reasonable period of time, not to exceed one year beyond the date of the financial statements being audited (hereinafter referred to as a reasonable period of time).

How is the auditors responsibility for expressing the opinion on financial statements disclosed in the standard unmodified report for a nonpublic company?

How is the auditors’ responsibility for expressing the opinion on financial statements disclosed in the standard (unmodified) report for a nonpublic company? Stated explicitly in the opinion paragraph.

What is the auditor’s responsibility related to the report of management?

The auditor is responsible for verifying that all important management assertions related to transactions, accounts, and line items and disclosures in the financial statements are reasonable, that is, free of significant misstatement.

How are managements responsibility and the auditors responsibility represented in the standard auditors report?

The financial statements are management’s responsibility. The auditor’s responsibility is to express an opinion on the financial statements. The entity’s transactions and the related assets, liabilities, and equity are within the direct knowledge and control of management.

How do you disclose going concern?

When going concern disclosures are required Disclosures are required indicating that either: The plans will mitigate relevant conditions and events that have caused substantial doubt, or. The plans won’t alleviate substantial doubt about the entity’s ability to continue as a going concern.

What are the auditors responsibilities when they believe a going concern paragraph is warranted?

What is a going concern audit?

The auditor’s conclusion as to whether substantial doubt about the entity’s ability to continue as a going concern for a reasonable period of time remains or is alleviated.

When does an Auditor review an entity’s ability to remain a going concern?

If through the performance of audit procedures, conditions or events indicate there could be substantial doubt about the entity’s ability to continue as a going concern, the auditor then reviews management’s plans to alleviate such conditions to inform his or her conclusions.

What is the auditor’s responsibility over going concern under as 2415?

AS 2415 also provides clarification as to the auditor’s responsibility over going concern through the following statements: “The auditor is not responsible for predicting future conditions or events.

What happens if an entity’s ability to continue as a going concern?

If disclosures with respect to an entity’s ability to continue as a going concern are inadequate, the auditor also should document the conclusion as to whether to express a qualified or adverse opinion for the resultant departure from generally accepted accounting principles.