Conformity with International Standards Conformity with International Standards on Auditing

Conformity with International Standards on Auditing

This Auditing Standard conforms with International Standard on Auditing ISA 570 Going Concern issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).

Paragraphs that have been added to this Auditing Standard (and do not appear in the text of the equivalent ISA) are identified with the prefix “Aus”.

The following requirements are additional to ISA 570:

If such events or conditions are identified, the auditor shall consider whether they affect the auditor’s assessment of the risks of material misstatement in accordance with ASA 315. (Ref: Para. Aus 16.1)

 Whether management is unwilling to make or extend its assessment as described in paragraph 22 of this Auditing Standard. (Ref: Para. Aus 23.1)

This Auditing Standard requires the auditor to assess the appropriateness of the going concern assumption for the relevant period, which is approximately 12 months from the date of the auditor’s current report to the expected date of the auditor’s report for the next reporting period. However, ISA 570 requires the auditor to consider the appropriateness of the going concern assumption for a period of at least, but not limited to, twelve months from the balance sheet date. (Ref: Para. Aus 13.1‑13.2)

The following application and other explanatory material is additional to ISA 570:

Appendix 1 contains an explanatory diagram mapping going concern considerations and types of audit opinions.

 Appendix 2 contains illustrations of auditors’ reports modified due to going concern considerations.

 Appendix 3 contains an illustration of an auditor’s report with an Emphasis of Matter paragraph due to material uncertainties on the going concern basis.

Compliance with this Auditing Standard enables compliance with ISA 570.