CTHIn ForceLegislation
Auditing Standard ASA 570 Going Concern
DefinitionDefinition
Start here
Get a plain-English read of Definition
Turn the raw legal text into a practical explanation grounded in Auditing Standard ASA 570 Going Concern.
Definition
- For the purposes of this Auditing Standard, the following term has the meaning attributed below:
- Material Uncertainty (Related to Going Concern)—An uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the entity’s ability to continue as a going concern. “May cast significant doubt” is used to refer to circumstances where the magnitude of the potential impact and likelihood of occurrence of the identified events or conditions are such that, unless management’s plans for future actions mitigate their effects, the entity may be unable to realise its assets and discharge its liabilities in the normal course of business and continue its operations for the foreseeable future. (Ref: Para. A5–A6)