Is a NASDAQ-listed company required to disclose the receipt of a “Going Concern” opinion from its independent auditors in the financial statements contained in the Form 10-K (or its equivalent)?
Yes. Pursuant to Listing Rule 5250(b)(2), a company that receives an audit opinion in which the auditor expresses doubt about the company’s ability to continue as a going concern for a reasonable period of time must make a public announcement through the news media disclosing the receipt of such qualification. Prior to the release of the public announcement, the company must provide the text of the public announcement to NASDAQ’s MarketWatch. The public announcement should be provided to MarketWatch and released to the media not later than seven calendar days following the filing of such audit opinion in a public filing with the SEC (or comparable regulator).
Related Questions
- Is a NASDAQ-listed company required to disclose the receipt of a "Going Concern" opinion from its independent auditors in the financial statements contained in the Form 10-K (or its equivalent)?
- If an entity is acquired by, or merges with, a NASDAQ-listed company, may a former officer of the acquired entity be eligible to qualify as an independent director of the combined entity?
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