Prüfung
Prüfung
7 June 2023

IAASB:
Draft of the amended ISA 570 on going concern

The IAASB issued Proposed International Standard on Auditing 570 (Revised), Going Concern, a draft of amended ISA 570 on going concern on April 26, 2023. Comments are requested by August 24, 2023.

Adoption of the revised standard is expected in December 2024. The effective date is proposed to be at least 18 months after adoption. Thus, in the case of fiscal years with the same calendar year, the amendments would affect annual and consolidated financial statements as of December 31, 2027 for the first time.

The main changes compared to the existing ISA 570 are:

  • Definition of "material uncertainty" (related to going concern);
  • Increased requirements for risk assessment procedures for the purpose of establishing an appropriate basis for identifying events or conditions that may cast significant doubt on the entity's ability to continue based on going concern;
  • extension of the period under review to at least twelve months after the date of approval of the financial statements (instead of previously twelve months after the reporting date);
  • expanded audit procedures to evaluate management's assessment of the entity's ability to continue based on going concern, including the methods, assumptions and data used, and emphasizing the critical nature of the assessment;
  • explicit request to management to update its assessment if the auditor identifies (further) events or circumstances;
  • increased requirements for the assessment of management's plans regarding future actions, including the intention and ability to implement them, both by management and by third parties;
  • always a separate paragraph in the auditor's report with comments to going concern.
br

All