| 6. | If the directors conclude that there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern, the Listing Rules require that a statement be made by the directors that the business is a going concern together with their supporting assumptions as necessary. |
| 7. | If the auditor also determines that there are no material uncertainties related to events or conditions that may cast doubt about the ability of the company to continue as a going concern, the auditor will be able to issue an unmodified opinion on the financial statements (i.e. there is no need for a going concern emphasis of matter paragraph). |
| 8. | However if, in the auditor's opinion, the directors' disclosures in their going concern statement are not balanced, proportionate or clear, the auditor considers whether it is necessary to communicate this fact in the auditor's report. If the auditor considers this to be necessary, paragraph 55 of ISA (UK and Ireland) 700 (Revised) requires the auditor to communicate this matter in an "other matter" paragraph in the auditor's report. |
|
|
Licence and copyright | © 2018, LexisNexis Group a division of Reed Elsevier (UK) Ltd. All rights reserved. |