All 18 Going Concern questions
More in Going Concern
What are indicators that going concern may be in doubt? How does the auditor evaluate management's going concern assessment? What time period does the going concern assessment cover? What are mitigating factors in a going concern assessment? How does going concern relate to Key Audit Matters (KAMs)? What is a material uncertainty related to going concern? 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?
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Auditing & Assurance › Going Concern

What disclosures are required when there is significant going concern doubt?

Intermediate

Answer

When a material uncertainty exists, the statements must disclose the principal events/conditions casting doubt, management's plans to address them, and state clearly that a material uncertainty exists that may cast significant doubt on the ability to continue as a going concern. Adequate disclosure is what allows an unmodified opinion (with a Material Uncertainty section).
Real-world example The notes describe the covenant breach, the planned refinancing, and explicitly state a material uncertainty exists.

Common follow-ups: What must the disclosure state explicitly? | How does disclosure affect the opinion?

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