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Material uncertainty
Auditing
What is material uncertainty i didn't understand clearly mam..........could u please explain it with an example Video Details ------------- P5 - Auditing and Ethics SA 570 - Going Concern #6. Impact on Audit Report
Answers (1)
It’s mean The business may survive or may fail. The decision depends on uncertain future factors and this uncertainty is important enough to affect users’ decisions. A company has a huge loan due in 3 months, but: -It does not have enough cash -It is planning to get a new loan to repay the old one So, If the new loan is approved then company survives If not then company may shut down.
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