Going Concern

Going Concern has long been a key focus area for auditors. 2020 has seen it once again thrust into the spotlight with many implications caused as a result of the Covid-19 pandemic. Predating this however, the FRC had plans to revise the International Standard of Auditing that covers Going Concern (ISA 570) in response to a number of corporate failures, where auditors had potentially failed to warn that companies were on the brink of collapse. The new standard is applicable for accounting periods beginning on or after 15 December 2019 with early adoption permitted. This therefore means that those companies with a December 2020 year end will be the first to be subject to the new standard.

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