b. The financial statements of Beta Ltd include a note relating to a significant uncertainty over...

 

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b. The financial statements of Beta Ltd include a note relating to a significant uncertainty over going concern. The uncertainty has arisen because a major customer has threatened to terminate its contract early due to Beta's failure to comply with service levels required by the contract. Your firm has concluded that the disclosure note included in Beta's financial statements is appropriate and adequate. Required: Discuss the modifications, if any, that the auditor would make to the audit report and opinion in respect of the going concern disclosure. b. The financial statements of Beta Ltd include a note relating to a significant uncertainty over going concern. The uncertainty has arisen because a major customer has threatened to terminate its contract early due to Beta's failure to comply with service levels required by the contract. Your firm has concluded that the disclosure note included in Beta's financial statements is appropriate and adequate. Required: Discuss the modifications, if any, that the auditor would make to the audit report and opinion in respect of the going concern disclosure.

Answer rating: 100% (QA)

Answer When there is a significant uncertainty related to a companys ability to continue as a going concern it is the responsibility of the auditor to ... View the full answer