The emergence of ‘zombie’ companies and recent corporate collapses in retail and construction have triggered renewed interest in ‘going concern’ financial-reporting and auditing rules.
Entities preparing either GPFSs or SPFSs are required to make an assessment of the going-concern basis of accounting. The extent of this assessment varies depending on an entity’s circumstances. Auditors are required to undertake procedures in accordance with ASA 570 Going Concern. New going-concern audit rules have been introduced in the UK that are noteworthy.
This session will:
- Re-examine the accounting rules for application of going concern
- Identify the documentation to support the going-concern basis, and
- Describe audit-risk-assessment processes, audit procedures, and documentation to minimise risk.