Here's a handy definition which may go some way to explaining...

Here's a handy definition which may go some way to explaining why a company would persist for so long with a non delivering CSI and maintain that they are their only choice of funding -


Material uncertainty to continue as a going concern


If a public company reports that its auditors have doubts about its ability to continue as a going concern, investors may take that as a sign of increased risk, although an emphasis of matter paragraph in an audit report does not necessarily indicate that a company is on the verge of insolvency. Despite this, some fund managers may be required to sell the stock to maintain an appropriate level of risk in their portfolios. A negative judgment may also result in the breach of bank loan covenants or lead a debt rating firm to lower the rating on the company's debt, making the cost of existing debt increase and/or preventing the company from obtaining additional debt financing. Because of such responses to expressed concerns by auditors, in the 1970s, the American Institute of Certified Public Accountants' Cohen commission concluded that an auditor's expression of uncertainty about the entity's ability to continue as a going concern "tends to be a self-fulfilling prophecy. The auditor's expression of uncertainty about the company's ability to continue may contribute to making its failure a certainty."

As seen in the above, finance can be very hard to come by when your auditor states they have material uncertainty about your Co's ability to continue as a going concern.

This may help some to work out why an unknown mortgage broker is the only chance of funding for their CDP.

B Rubes