IAASB staff alert on going concern

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24 Jan 2009

The unexpected severity, speed, and consequences of the credit crisis present unique challenges for management and auditors in assessing an entity's ability to continue as a going concern. To help auditors, management, and those charged with governance in addressing those challenges, the staff of the International Auditing and Assurance Standards Board (IAASB) has released a new practice alert entitled Audit Considerations in Respect of Going Concern in the Current Economic Environment.

The alert highlights areas in International Standard on Auditing (ISA) 570 Going Concern, as well as other ISAs, that are particularly relevant in the current economic environment and provides additional guidance for auditors in evaluating management's use of the going concern assumption. It also raises awareness of issues surrounding liquidity and credit risk that may create new uncertainties for entities or exacerbate those already existing. Click for:


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