Going Concern [ED]

Comments are requested (i) the AASB, by July 31, 2023; (ii) the IAASB, by August 24, 2023

Next steps:

The IAASB will consider feedback themes and deliberate on revisions in response to the feedback in June 2024

Last up­dated:

March 2024


On September 15, 2020, the International Auditing and Assurance Standards Board (IAASB) opened a public consultation, "Fraud and Going Concern in an Audit of Financial Statements: Exploring the Differences Between Public Perceptions About the Role of the Auditor and the Auditor’s Responsibilities in a Financial Statement Audit". Comments were requested by January 12, 2021.

Based on the feedback to the Consultation Paper, the IAASB decided to proceed with an Exposure Draft to amend IAS 570, Going Concern.

On April 26, 2023, the IAASB issued its Exposure Draft (ED) where it proposes the following revisions that aim to:

  • Promote consistent practice and behavior and facilitate effective responses to identified risks of material misstatement related to going concern;
  • Strengthen the auditor’s evaluation of management’s assessment of going concern, including reinforcing the importance, throughout the audit, of the appropriate exercise of professional skepticism; and
  • Enhance transparency with respect to the auditor’s responsibilities and work related to going concern where appropriate, including strengthening communications and reporting requirements.

On May 30, 2023, the Auditing and Assurance Standards Board (AASB) issued its equivalent Exposure Draft in respect of the amendments to CAS 570, Going Concern. Comments are requested by July 31, 2023.

The AASB plans, subject to comments received following exposure, to adopt proposed ISA 570 (Revised 202X) and the proposed conforming and consequential amendments to other ISAs. The result would be revised respective Canadian Auditing Standards (CASs).

For more in­for­ma­tion about the IAASB’s pro­ject on Go­ing Con­cern, visit:


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