Going concern concept

Going concern concept is always assumed to be followed. however the auditor should evaluate about a company's ability to continue as a going concern over the coming year. If the auditor has such doubt, he or she must state that opinion in the audit's report paragraph and modify his opinion by giving a qualified opinion.

compltly agrre wit ritika

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.

but ma'am hw to qualify it.. I mean hw to present it in the report??

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.

How the same can be expressed in notes to accounts of Rev Sch VI