ISA 570 (Revised 2024) requires auditors to describe their going concern conclusion in the auditor’s report, for audits of periods beginning on or after 15 December 2026. Here is what changes.
What’s News? I will limit this discussion to the audit of companies, but the principles make governance sense for any entity. In general, management’s assessment of the health of their business is only an afterthought to satisfy the auditors, without them realising the disastrous consequences on the business and themselves as individuals, if they don’t do so. Somehow, the understanding of the effect of going-concern assessments by auditors is not much different, as the required procedures, in terms of the auditing standards, are followed in a boilerplate fashion, without considering or understanding the effect on stakeholders and management. [...]
LATEST UPDATE Exposure Draft: Proposed SAAPS 3 (Revised XXX 2026), Illustrative Reports The Independent Regulatory Board for Auditors’ Committee for Auditing Standards has approved the issuing of the proposed South African Auditing Practice Statement (SAAPS) 3 (Revised XXX 2026), Illustrative Reports, for exposure on public comment by 7 August 2026. The proposed SAAPS 3 (Revised) includes significant revisions to SAAPS 3, including the following. The incorporation of new and revised reporting requirements arising from: ISA 570 (Revised 2024), Going Concern ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements [...]
LATEST UPDATE IAASB Seeks Feedback on Proposed Revisions to ISRE 2410 to Strengthen Interim Review Engagements The International Auditing and Assurance Standards Board has released for public consultation an Exposure Draft that proposes revisions to International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information by the Independent Auditor of the Entity’s Annual Financial Statements. The proposed revisions represent the first comprehensive review of the standard since its issuance in 2005. These proposed revisions reflect changes in the global environment, and improvements to the audit and assurance model made over the last two [...]
Newsletter April Significant Risk Assessment Auditors are required to obtain sufficient appropriate audit evidence regarding the appropriateness of management’s use of the going concern basis of accounting in the preparation of the financial statements, and to determine its impact on the audit report. However, results from monitoring reviews point to a significant documentation gap in the audit working papers when it comes to this important assessment, resulting in inadequate support for conclusions drawn and the opinion expressed. Risk assessment procedures and related activities Risk assessment procedures performed during the planning phase of the audit include [...]
