Going Concern & Uncertainty

Going Concern - Auditor's report presentation:

• Adequate disclosure: Unmodified with Emphasis-of-Matter paragraph
• must include terms: substantial doubt, going concern
• Inadequate disclosure: Qualified or Adverse
• Significant going concern uncertainty: Disclaimer 

Going Concern Mitigating Factors (intent & ability to execute):

• Borrow money or restructure debt
• Sell assets
• Delay or reduce expenses
• Increase ownership equity

Uncertainty

• No material misstatement & sufficient evidence: Unmodified
• Material misstatement related to uncertainty: Qualified or Adverse
• Insufficient evidence (scope limitation): Qualified or Disclaimer