AAA Technical Articles1.Going Concern2.Data Analytics and the Auditor3.Auditing in specialised industries4.IAASB exposure draft – Proposed International Standard on Auditing 540 (Revised)5.Evaluation of misstatements6.Responding to non-compliance with laws and regulations7.Corporate governance and its impact on audit practice8.Auditing disclosures in financial statements9.Performance information in the public sector10. Audit quality – a perpetual current issue11. Professional scepticism12. Auditor liability: ‘fair and reasonable’ punishment?13. Continue to be rest assured14. Completing the audit15. Massaging the figures16. Forensic auditing1
AAA Technical Articles17. Auditors' reports to those charged with governance18. Group auditing19. Group audit issues1) Going concernThe Paper P7 examiner describes the additional guidance given for ISA 570,Going ConcernThe recent global economic crisis, commonly referred to as the credit crunch, has provided many challenges for both the preparers and the auditors of published financial statements.For auditors, ISA 570, Going Concern is a well-established source of guidance, and additional direction has been provided by the IAASB's Practice AlertAudit Considerations in Respect of Going Concern in the Current Economic Environment, issued in January 2009. In the UK, the APB issued the Bulletin Going Concern Issues During the Current Economic Conditionsin December 2008. Both of these are examinable documents for the Paper P7 exams in 2010.The auditor's objectives in relation to going concernISA 570 contains well-established guidance on going concern, including the following objectives for the auditor:to obtain sufficient appropriate audit evidence regarding the appropriateness of management's use of the going concern assumption in the preparation of the financial statements2
AAA Technical Articlesto conclude, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern, andto determine the implications for the auditor's report.All audits should involve an assessment of the appropriateness of the going concern assumption, and it is obvious to say that the auditor may well have to perform additionalprocedures when there are heightened risks relating to going concern, caused by difficult economic and market conditions. But going concern should be considered at all stages of the audit, not just in terms of specific procedures. It is important to remember that going concern is not just something considered at a particular stage in the audit cycle, but should be an issue that permeates the whole performance and review of an audit.