Evaluating Management’s AssessmentEvaluating Management’s Assessment

Evaluating Management’s Assessment

1. The auditor shall evaluate management’s assessment of the entity’s ability to continue as a going concern. (Ref: Para. A8–A10, A12–A13)
2. [Deleted by the AUASB. Refer Aus 13.1[4]]

Aus 13.1 In evaluating management’s assessment of the entity’s ability to continue as a going concern, the auditor shall consider the relevant period as defined in paragraph Aus 13.2 of this Auditing Standard, which may be the same or may differ from that used by management to make its assessment as required by the applicable financial reporting framework. If management’s assessment of the entity’s ability to continue as a going concern covers less than the relevant period, the auditor shall request management to extend its assessment period to correspond to the relevant period used by the auditor. (Ref: Para. A11–A13)

Aus 13.2 Relevant period means the period of approximately twelve months from the date of the auditor’s current report to the expected date of the auditor’s report for:

(a) the next annual reporting date in the case of an annual financial report; or

(b) the corresponding reporting period for the following year in the case of an interim financial reporting period.

1. In evaluating management’s assessment, the auditor shall consider whether management’s assessment includes all relevant information of which the auditor is aware as a result of the audit.