GRF Private Limited has appointed Mohit & Associates as the statutory auditors for the financial year 2024–25. The company operates a chain of…

As per SA 570, when events or conditions exist that may cast significant doubt on the entity's ability to continue as a going concern, the auditor must obtain sufficient appropriate audit evidence to determine whether a material uncertainty exists. Accordingly, CA M should perform following audit procedures: Where management has not yet performed an assessment of the entity's ability to continue as a going concern, requesting management to make its assessment.Evaluating management's plans for future actions in relation to its going concern assessment, whether the outcome of these plans is likely to improve the situation and whether management's plans are feasible in the circumstances.Where the entity has prepared a cash flow forecast, and analysis of the forecast is a significant factor in considering the future outcome of events or conditions in the evaluation of management's plans for future actions:Evaluating the reliability of the underlying data generated to prepare the forecast; andDetermining whether there is adequate support for the assumptions underlying the forecast.Considering whether any additional facts or information have become available since the date on which management made its assessment.Requesting written representations from management and, where appropriate, those charged with governance, regarding their plans for future actions and the feasibility of these plans. If adequate disclosure about the material uncertainty is made in the financial statements, the auditor shall express an unmodified opinion and the auditor's report shall include a separate section under the heading “Material Uncertainty Related to Going Concern” to: Draw attention to the note in the financial statementsState that these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the entity's ability to continue as a going concern and that the auditor's opinion is not modified in respect of the matter. In the given situation, CA M should express an unmodified opinion in view of above.