Auditing & Assurance › Going Concern
What are the auditor's options if management is unwilling to make or extend a going concern assessment?
AdvancedAnswer
If management won't perform or extend its assessment when asked, the auditor faces a limitation—they may be unable to obtain sufficient appropriate evidence about going concern. This can lead to a qualified opinion or a disclaimer of opinion, because the auditor cannot conclude on a fundamental basis of preparation. The matter is also communicated to those charged with governance.
Real-world example When management refuses to extend its forecast to twelve months, the auditor considers a qualified opinion or disclaimer.