Period Beyond Management’s AssessmentPeriod Beyond Management’s Assessment

Period Beyond Management’s Assessment

27 The auditor shall enquire of management as to its knowledge of events or conditions and related business risks beyond the period of assessment used by management that may cast significant doubt on the entity’s ability to continue as a going concern.

28 Ordinarily, the auditor is to be alert to the possibility that there may be known events, scheduled or otherwise, or conditions that will occur beyond the period of assessment used by management that may bring into question the appropriateness of management’s use of the going concern assumption in preparing the financial report. The auditor may become aware of such known events or conditions during the planning and performance of the audit, including subsequent events procedures.

29 Since the degree of uncertainty associated with the outcome of an event or condition increases as the event or condition is further into the future, in considering such events or conditions, the indications of going concern issues will need to be significant before the auditor ordinarily considers taking further action. The auditor may need to ask management to determine the potential significance of the event or condition on their going concern assessment.

30 The auditor does not have a responsibility to design audit procedures other than enquiry of management to test for indications of events or conditions which cast significant doubt on the entity’s ability to continue as a going concern beyond the period assessed by management which, as discussed in paragraph 23, would be at least the relevant period.