Going concern assessments always significant
The International Auditing and Assurance Standards Board (IAASB) has issued a media release reminding auditors of their important responsibilities relating to going concern assumptions under the International Standards on Auditing (ISAs) in light of the current difficult global financial conditions. The IAASB acknowledges that the difficulties involved in this process can be significant under the current volatile economic conditions and to assist has referred auditors to its 2009 Staff Audit Practice Alert (PDF) which highlights the matters which are relevant in the consideration of the going concern assumption in the preparation of financial statements, and addresses factors relevant to the assessment of going concern; the period of time considered in making a going concern assessment, financial statement disclosures; forming an opinion on financial statements and the implications for the auditor’s report. While this document was prepared several years ago, many of the issues it covers remain relevant.
Members facing going concern issues can also access a range of resources collated by the Institute for the global economic downturn which will be of similar help and are still availalbe.
Article last updated 18 February 2013