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CAS 570, Going Concern

Ef­fec­tive date:

Effective for audits of financial statements for periods ending on or after December 14, 2010 except for subsequent amendments.

Overview

CAS 570, Going Concern, deals with the auditor's responsibilities in the audit of financial statements relating to management's use of the going concern assumption in the preparation of the financial statements.

Under the going concern assumption, an entity is viewed as continuing in business for the foreseeable future. General purpose financial statements are prepared on a going concern basis, unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. Special purpose financial statements may or may not be prepared in accordance with a financial reporting framework for which the going concern basis is relevant (for example, the going concern basis is not relevant for some financial statements prepared on a tax basis in particular jurisdictions). When the use of the going concern assumption is appropriate, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.

His­tory of CAS 570

Date

Development

Comments

June 2017

CAS 570 has been revised and reissued as a result of the issue of the new auditor reporting standards, including the issue of CAS 701, Communicating Key Audit Matters in the Independent Auditor's Report.

The revised CAS 570 is effective for audits of financial statements for periods ending on or after December 15, 2018.  Earlier application is permitted.

Note: Our history summary does not take into account consequential amendments made as the result of other projects.

Amendments under consideration

  • None

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.