Going Concern - IAASB

Date recorded:

At its meeting on September 12-16, 2022, the IAASB discussed the Going Concern Task Force’s initial views and recommendations for selected key issues identified in the project proposal for the revision of ISA 570 (Revised). In addition, the Board broadly supported the changes considered and made to the drafting paragraphs of ISA 570 (Revised) in response to Board feedback for the topics that were deliberated at the June 2022 IAASB meeting. The Board supported the proposed definition for material uncertainty (related to going concern) and the enhancements proposed to enable a more robust exercise of professional skepticism when performing procedures related to going concern. There was also support for the proposed enhancements to strengthen the requirements of proposed ISA 570 (Revised) to drive the auditor to obtain information that is relevant to timely identification of events and conditions that may cast significant doubt on the entity’s ability to continue as a going concern and to require a more robust evaluation of management’s assessment of going concern. Other matters that were discussed by the Board, and for which directional support was provided to the Going Concern Task Force, included the timeline over which the going concern assessment is made and transparency about going concern in the auditor’s report. In December 2022, the Going Concern Task Force intends to discuss with the Board the remaining proposed actions in the project proposal and the conforming and consequential amendments to other relevant ISAs as a result of the proposed revisions to ISA 570 (Revised). In addition, the Board will be presented with a first full draft of proposed ISA 570 (Revised).

Review the summary, including the podcast, on the IAASB's Web site.

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