Material adverse changes, which raise substantial doubt about its ability to continue as a going concern is one example of a fairly innocuous phrase which can have profound implications for a corporation’s survival. It is an auditor’s going concern qualification something chief financial officers are becoming increasingly familiar with as the recession tightens its Darwinian grip on debt-laden corporations.
According to research firm Audit Analytics, more than 23% of public company filings made in the US for fiscal years ending between June 30 and December 31, 2008, included a going-concern qualification. But just how often is an auditor’s going concern qualification likely to appear in Asia
A recent paper from the World...
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