Auditor’s ResponsibilityAuditor’s Responsibility

Auditor’s Responsibility

14 In respect of going concern the auditor’s responsibility is as follows:

(a) under paragraph 5 of this Auditing Standard, the auditor needs to consider the appropriateness of management’s use of the going concern assumption in the preparation of the financial report;

(b) under paragraph 39 of this Auditing Standard, the auditor needs to consider whether there are material uncertainties about the entity’s ability to continue as a going concern that need to be disclosed in the financial report; and

(c) under paragraph 5 of this Auditing Standard, the auditor needs to consider the appropriateness of management’s use of the going concern assumption even if the financial reporting framework used in the preparation of the financial report does not include an explicit requirement for management to make a specific assessment of the entity’s ability to continue as a going concern.

15 The auditor cannot predict future events or conditions that may cause an entity to cease to continue as a going concern. Accordingly, the absence of any reference to going concern uncertainty in an auditor’s report cannot be viewed as a guarantee as to the entity’s ability to continue as a going concern.