Auditing going concern assessment

Management’s assessment of the entity’s ability to continue as a going concern is a key part of the auditor’s consideration of management’s use of the going concern assumption

It is not the auditor’s responsibility to rectify the lack of analysis by management

The evaluation of the management’s assessment of going concern is an essential part of the auditor’s work in the audit of the going concern assumption and is a procedure that is expressly required by ISA 570

The going concern assessment required to be performed by directors should consider all the facts and circumstances about the foreseeable future of a company known at the date of approval of the accounts

The level of detail of the assessment and extent of procedures required would vary in accordance with the size and complexity of the entity