03-27-2004, 04:46 PM
I was going through ATR issued by ICAP came along the fact that ICAP has prescribed a format for emphasize to be inserted in the audit report of the company for going concern which is as follows
"Without qualifying our opinion, we draw attention to note X in the financial statements which indicate that the company incurred a net loss of ZZZ during the year ended December 31, 20X1 and as of that date, company's current liablities exceed its total assets by ZZZ. These condiitons along with other matters as set forth in Note X, indicate the existance of a material uncertainity which may cast significant doubt about the company's ability to continue as a going concern"
This states that following condition are to be reported
1. Company has incurred loss
2. Company's current liablity exceed its total assets
My question is if company's current liablity exceed its total assets but company is in profit than what should the auditor do whether to still insert emphasize
Irfan
"Without qualifying our opinion, we draw attention to note X in the financial statements which indicate that the company incurred a net loss of ZZZ during the year ended December 31, 20X1 and as of that date, company's current liablities exceed its total assets by ZZZ. These condiitons along with other matters as set forth in Note X, indicate the existance of a material uncertainity which may cast significant doubt about the company's ability to continue as a going concern"
This states that following condition are to be reported
1. Company has incurred loss
2. Company's current liablity exceed its total assets
My question is if company's current liablity exceed its total assets but company is in profit than what should the auditor do whether to still insert emphasize
Irfan
