Jasmine Co. manufactures motor vehicle components and its year end was 31 March 202X. Total assets are £43.2m and profit before tax is £7.2m. The following matter has been brought to your attention:  During the final audit, the finance director informed the audit team that Jasmine Co.’s bankers will not make a decision on the renewal of the overdraft facility until after the Auditor’s Report has been signed. The audit manager is satisfied that the use of the going concern basis is appropriate. The directors have agreed to include some brief going concern disclosures in the draft financial statements and the audit team still has to assess the adequacy of these disclosures.

Required:
Discuss the issue and describe the impact on the Auditor’s Report of Jasmine Co. of adequate AND inadequate going concern disclosure.