Management must assess the entity's ability to continue as a going concern when preparing the financial statements. If there are events that cast significant doubt on going concern (such as continuing losses, negative equity or inability to pay debts as they fall due), they must be disclosed in the notes.
The auditor reviews this assessment and, if there is a material uncertainty, draws attention to it in a separate paragraph in the report. Loss of capital and over-indebtedness under Article 376 of the Turkish Commercial Code are also important in this assessment.
Source: BDS 570
Related terms
Independent auditor's reportThe formal report in which the auditor sets out in writing the opinion reached on the financial statements and the basis for that opinion.Events after the reporting periodEvents occurring between the end of the reporting period and the date the financial statements are authorised for issue.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.Assurance engagementAn engagement providing assurance, against specified criteria, on a subject matter other than an audit or review of historical financial information.
Last updated: October 22, 2026 · This definition is for general information only.