Understanding Going Concern (Revised 2024) Overview The going concern concept is a fundamental accounting assumption that an entity will continue operating in the foreseeable future to fulfil its commitments, obligations and objectives, rather than being forced to liquidate or cease operations in the short term. ISA 570 (Revised 2024) strengthens the auditor’s responsibilities when evaluating management’s assessment of going concern. The revised standard was issued following high-profile corporate failures that raised concerns about audit effectiveness and the robustness of going concern evaluations. While IFRS does not change recognition and measurement under going concern, the auditor’s [...]

Understanding Going Concern (Revised 2024) Overview The going concern concept is a fundamental accounting assumption that an entity will continue operating in the foreseeable future to fulfil its commitments, obligations and objectives, rather than being forced to liquidate or cease operations in the short term. ISA 570 (Revised 2024) strengthens the auditor’s responsibilities when evaluating management’s assessment of going concern. The revised standard was issued following high-profile corporate failures that raised concerns about audit effectiveness and the robustness of going concern evaluations. While IFRS does not change recognition and measurement under going concern, the auditor’s [...]