Auditing & Assurance › Going Concern

How do going concern conclusions affect the auditor's report?

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Answer

If the going concern basis is appropriate but a material uncertainty exists and is adequately disclosed: unmodified opinion with a Material Uncertainty section. If not adequately disclosed: qualified or adverse opinion. If the going concern basis is used but is inappropriate (entity will liquidate): adverse opinion. If management won't perform/extend an assessment: possibly a qualified opinion or disclaimer.

Basis appropriate + MU disclosed -> unmodified + MU section
MU not disclosed -> qualified/adverse
Basis inappropriate -> adverse

Real-world example Because the failing company still used the going concern basis, the auditor issued an adverse opinion.

Common follow-ups: When is an adverse opinion required for going concern? | What if disclosure is inadequate?

Audit Report & Opinions ISA Standards Going Concern