Sa 570 (going concern)

This discussion clarifies the auditor's role under SA 570 when the going concern assumption is questionable. It explains that if management fails to make appropriate disclosures or prepares financial statements on an inappropriate going concern basis, an adverse opinion is generally required. However, if the financial statements are prepared on a basis other than going concern (e.g., net realisable values) with proper disclosure, an unmodified opinion may be issued. The key distinction lies in whether the financial statements themselves are fundamentally flawed due to an incorrect going concern assumption.