Going Concern and Audit Reports

Reporting Going Concern Uncertainty

If substantial doubt exists about the entity's ability to continue as a going concern and management has adequately disclosed the uncertainty, the auditor generally issues an unmodified opinion with a separate section titled 'Substantial Doubt About an Entity's Ability to Continue as a Going Concern.' If the required disclosures are inadequate, a modified opinion may be necessary.

• Evaluate management's disclosures.
• Determine whether substantial doubt exists.
• Include a separate going concern section when required.
• Modify the opinion if required disclosures are inadequate.

Going concern uncertainty does not automatically require a modified opinion.