All 18 Going Concern questions
More in Going Concern
What time period does the going concern assessment cover? What are mitigating factors in a going concern assessment? What disclosures are required when there is significant going concern doubt? How does going concern relate to Key Audit Matters (KAMs)? How do going concern conclusions affect the auditor's report? How do you audit a cash flow forecast supporting going concern? How does subsequent-event review interact with going concern? What are the auditor's options if management is unwilling to make or extend a going concern assessment? How should the auditor handle a 'close call' going concern situation?
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Auditing & Assurance › Going Concern

What is a material uncertainty related to going concern?

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Answer

A material uncertainty exists when events/conditions cast significant doubt on the entity's ability to continue as a going concern, and the magnitude of potential impact and likelihood are such that appropriate disclosure is necessary for fair presentation. If adequately disclosed and the going concern basis remains appropriate, the auditor issues an unmodified opinion with a 'Material Uncertainty Related to Going Concern' section.
Real-world example With doubtful but disclosed refinancing, the auditor gives a clean opinion plus a Material Uncertainty section highlighting the risk.

Common follow-ups: How is a material uncertainty reported? | Is the opinion modified if it's well disclosed?

Audit Report & Opinions ISA Standards Going Concern
All 18 Going Concern questions