The official annual report is the company’s way of telling the users of the financial statements how the company performs. This is also a way to tell if the company’s ability to continue their operation is doubtful or risky but this can be a negative solution for the company to tell. Are the future and present co-operation with customers and suppliers going to be jeopardize because the annual report is showing that there is doubt about the consist and future of the company?
Every fourth auditor had in 2014 given an auditors opinion without and confirming conclusion and in 2012 where there 33,000 annual reports that contained an auditors opinion with a modification.
It is the top management’s responsibility to make the annual report and to make it true and fair.
It is the auditor’s responsibility to audit the assessment for which the top management has made. If the top management does not assess that there are uncertainty about Going concern but there is no way there can document and prove this to their auditor, then the auditor should make sure to show this in the auditors opinion if the top management does not show this in the annual report. The auditors opinion should therefore be modified which additional information if it is a low degree of dispute but if it is a fundamental misinformation to make the annual report which no doubt of Going concern then the auditor should make the auditors opinion as a qualified auditors report.
The following master thesis addresses the definition of the term Going concern and where the pitfalls are in the process of the auditor when auditing Going concern. The master thesis will go through the process of the audit and what the international standards of auditing says about auditing Going concern. The auditors way of reporting if the auditor disagree with the management are also described.
This master thesis are last going to examine judicial decisions in 2014 and 2015 round auditors who is charged round poor auditing of Going concern and based on these results make a conclusion round what auditors should have more focus on round auditing Going concern. The “Revisornævnet” are the court for which the auditors will be charged in if the auditor fail to comply with the Danish Financial Statements Act, the executive order on statements made by state-authorized/-ised and registered accountants and etc.
|Uddannelser||Cand.merc.aud Regnskab og Revision, (Kandidatuddannelse) Afsluttende afhandling|