Question
Client has breached debt covenants; lender issued waiver
valid for 9 months after balance sheet date. Auditor notes liquidity support from group company but no formal commitment. What should auditor conclude?Solution
SA 570 requires auditor to evaluate going concern for at least 12 months. Waiver for 9 months leaves uncertainty. With no formal support, a material uncertainty exists; adequate disclosure + a separate paragraph is required, not adverse/disclaimer unless disclosures inadequate.
Which, among the following option(s) , is/are definitely true?
If father of V is brother of mother of W’s wife’s brother. How is sister of husband of mother of V related to W’s son’s mother’s brother’s ...
How is T’s father related to W, if W is a female?
- A + B means ‘A is the mother of B’; A – B means ‘A is the husband of B’; A × B means ‘A is the son of B’; A ÷ B means ‘A is the daughter ...
How is W related to S?
If ‘P × Q’ mean ‘Q is the sister of P’, ‘P + Q’ means ‘Q is the daughter of P’ , ‘P ÷ Q’ means ‘P is the wife of Q’, and ‘P-...
If E does not have any Granddaughter, then how many female members are there in the family?
Who among the following person is the son of G?
How is U related to W?
Pointing to a boy in the picture, Manisha said, “His fathers’s sister is the only daughter of my father’s father.” How is the boy’s father re...
