if the company is not following the going concern concept. how the same is to be qualified in the audit report?
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 18 May 2011
compltly agrre wit ritika
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 19 May 2011
Going concern concept is one of the fundamental assumptions in case of any business and the company need not disclose about its going concern. In case, the business ceases to be going concern, then there can be two possibilities--
1. The company has not reported it through notes to accounts -- In this case, the auditor should qualify the report mentioning that the company has ceased to be going concern and has not disclosed it in the books of accounts.
2. The company has disclosed this fact in notes to accounts -- In this case, the auditor need not qualify report as the management has already disclosed the same in annual accounts.
varsha
(Article)
(98 Points)
Replied 19 May 2011
but ma'am hw to qualify it.. I mean hw to present it in the report??
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 19 May 2011
It has to be reported under the head non-compliance with accounting standards. It is a material devistion from accounting standard 1. So the auditor shall qualify about the deviation from compliance of accounting standards.
Guru Prasad
(student)
(31 Points)
Replied 19 July 2012
How the same can be expressed in notes to accounts of Rev Sch VI
CAclubindia
