The International Auditing and Assurance Standards Board (IAASB) has released a new practice alert entitled Auditing Considerations in Respect of Going Concern in the Current Economic Environment (PDF) specifically to help auditors and management meet their responsibilities in assessing an entity’s ability to continue as a going concern, in light of the global economic downturn. 
 
The alert highlights areas within ISA 570 Going Concern (Australian equivalent ASA 750), amongst other ISAs, that are of particular relevance in the current economic climate and provides additional guidance for auditors in evaluating management’s use of the going concern assumption. It also draws attention to issues surrounding liquidity and credit risk that may create new uncertainties for entities or exacerbate pre-existing ones. 
 
More information on International Federation of Accountants (IFAC) initiatives with regard to the global economic downturn is available on the dedicated IFAC webpage.