LATEST UPDATE
IAASB Strengthens Auditor Responsibilities for Going Concern through Revised Standard
The International Auditing and Assurance Standards Board (IAASB) has released its revised International Standard on Auditing 570 (Revised 2024), Going Concern.
The revised standard responds to corporate failures that raised questions regarding auditors’ responsibilities by significantly enhancing the auditor’s work in evaluating management’s assessment of an entity’s ability to continue as a going concern. Effective for audits of financial statements for periods beginning on or after December 15, 2026, the standard will also increase consistency in auditing practices and strengthen transparency through communications and auditor reporting on matters related to going concern in a consistent manner.
ISA 570 (Revised 2024) introduces several key changes:
- Robust risk assessment
- Evaluating management’s assessment
- Extended date of evaluation period
- Enhanced transparency
The IAASB also developed a fact sheet and Basis for Conclusions, which are available on the IAASB’s website, on this link.
The IAASB will also issue a FAQ document and technical overview video to support the revised standard’s implementation.
