The consideration of an entity’s ability to continue as a going concern is required in every audit performed under generally accepted auditing standards, and is an especially important consideration in the current state of the economy. An entity’s ability to continue as a going concern is affected by many factors related to the current uncertain economy—the industry and geographic area in which it operates, the financial health of its customers, suppliers, and financing sources.
Download the Audit Risk Alert Whitepaper Current Economic Crisis: Going Concern Considerations-2012.
This Going Concern White Paper is intended to provide auditors of financial statements with an overview of their responsibilities under AU-C Section 570, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern. This Paper has been derived from the AICPA’s Audit Risk Alert, General Accounting and Auditing Developments. To read more about the entire audit risk alert, click here.
If an auditor applies the auditing guidance included in an other auditing publication, he or she should be satisfied that, in his or her judgment, it is both relevant to the circumstances of the audit and appropriate. The auditing guidance in this document has been reviewed by the AICPA Audit and Attest Standards staff and published by the AICPA and is presumed to be appropriate. This document has not been approved, disapproved, or otherwise acted on by a senior technical committee of the AICPA.