risk

Significant risk is risk where auditor could end up giving an inappropriate opinion when financial statements are materially misstated. Or fraud risk factors, related parties transaction , non routine transaction etc. . are significant risk. Can u mention the context where you come across significant uncertainties?

Pradnya Bajaj

Faculty

08-Feb-24 18:17

in audit documentation we have to document the significant risks as well as significant uncertainties , but i didn't understand what is the difference b/w the two?

Thread Starter

Swathi Krishna

CA Final

★ 8K+

09-Feb-24 10:39

any uncertainty that cast a significant doubt on the entity's ability to continue as a going concern. like net losses , pending litigation , the outcome of which could have adverse impact on entity's cashflows etc.

Pradnya Bajaj

Faculty

10-Feb-24 10:35