CA Ananya Sharma was appointed as the statutory auditor of Vertex Textiles Limited for the financial year 2025-26. During the audit, the company…

Responsibilities of the auditor The auditor's responsibilities are to obtain sufficient appropriate audit evidence regarding and conclude on the appropriateness of management's use of the going concern basis of accounting in the preparation of the financial statements and to conclude, based on the audit evidence obtained, whether a material uncertainty exists about the entity's ability to continue as a going concern. These responsibilities exist even if the financial reporting framework used in the preparation of the financial statements does not include an explicit requirement for management to make a specific assessment of the entity's ability to continue as a going concern. However, as described in SA 200, the potential effects of inherent limitations on the auditor's ability to detect material misstatements are greater for future events or conditions that may cause an entity to cease to continue as a going concern. The auditor cannot predict such future events or conditions. Accordingly, the absence of any reference to a material uncertainty about the entity's ability to continue as a going concern in an auditor's report cannot be viewed as a guarantee as to the entity's ability to continue as a going concern. The auditor is responsible for obtaining sufficient appropriate audit evidence regarding the appropriateness of management's use of the going concern basis of accounting and for concluding whether a material uncertainty exists regarding the entity's ability to continue as a going concern. These responsibilities apply even where the applicable financial reporting framework does not expressly require management to perform a going concern assessment. However, because of the inherent limitations of an audit and the uncertainty associated with future events and conditions, the auditor cannot predict future outcomes. Therefore, the absence of any reference to a material uncertainty relating to going concern in the auditor's report should not be construed as a guarantee that the entity will continue as a going concern in the future.