Going Concern
What the Project Aims to Achieve
The IAASB is currently working on a project to revise ISA 570 (Revised), Going Concern. The project is primarily focused on standard-setting actions that are intended to address targeted revisions of ISA 570 (Revised), rather than a comprehensive revision of the standard.
In revising the standard, the IAASB aims 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.
Project Timeline
The following table sets out the project timeline. Please note that these are current targeted milestones and may change as the work in this area progresses.
Current Status of the Project
At its September 2022 meeting, the Going Concern Task Force discussed with the Board its initial views and recommendations for several key issues and related proposed actions identified in the project proposal for the revision of ISA 570 (Revised), related to:
- Terminology;
- Risk identification and assessment;
- Management’s assessment of going concern; and
- Professional skepticism.
In December 2022, the Going Concern Task Force intends to discuss and obtain views from the Board for its proposals to address the remaining proposed actions of the project to revise ISA 570 (Revised) related to information from sources external to the entity and audit techniques – use of technology. In addition, in December 2022, the Going Concern Task Force will also present to the Board the conforming and consequential amendments to other relevant ISAs as a result of the proposed revisions to ISA 570 (Revised) and a first full draft standard.
Task Force Information
IAASB Staff Contacts
Working Group Members
