SimplyCPA
Quick Sheets/AUD/Related Parties & Going Concern

AUD — Quick Sheet

Related Parties & Going Concern

Read time: ~5 minutes

One-minute revision

  • Related-party transactions: inquire, stay alert, evaluate disclosure — auditor need not verify arm's-length pricing
  • Going concern horizon: ~1 year from date statements are issued/available to be issued
  • Doubt alleviated by plans + disclosed → unmodified, no required extra section
  • Doubt remains + adequately disclosed → unmodified opinion + separate going-concern section
  • Doubt remains + inadequate disclosure → qualified or adverse (GAAP departure)

COMMON TRAP: Going-concern doubt alone never qualifies the opinion.