Section Evaluating the Audit Evidence Obtained a - Auditing Standard ASA 570 Going Concern - Evaluating the Audit Evidence Obtained and Concluding

Evaluating the Audit Evidence Obtained aEvaluating the Audit Evidence Obtained and Concluding

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The auditor shall evaluate whether sufficient appropriate audit evidence has been obtained regarding, and shall conclude on, the appropriateness of management’s use of the going concern basis of accounting in the preparation of the financial report. In doing so, the auditor shall: (Ref: Para. A67)
1. Evaluate whether the judgements and decisions made by management in making its assessment of the entity’s ability to continue as a going concern, even if they are individually reasonable, are indicators of possible management bias. When indicators of possible management bias are identified, the auditor shall evaluate the implications for the audit. (Ref: Para. A68–A71)
2. Consider all audit evidence obtained, including audit evidence that is consistent or inconsistent with other audit evidence, and regardless of whether it appears to corroborate or contradict the assertions in the financial report.
Based on the audit evidence obtained, the auditor shall conclude whether, in the auditor’s professional judgement, a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. (Ref: Para. A72)