Thursday, August 24, 2023
Following extensive consultation with Australian stakeholders, the AUASB has finalised its response to the IAASB on its Exposure Draft of ISA 570 (Revised), Going Concern. The AUASB’s submission, containing detailed responses to the questions within the IAASB’s Exposure Draft, can be accessed here.
In its response, the AUASB expresses support for the IAASB’s efforts to strengthen the auditor’s evaluation of management’s assessment of going concern and improve transparency in the auditor’s report. However, the AUASB underscores the necessity for concurrent enhancements to financial reporting requirements to effectively achieve the IAASB’s objectives. Additionally, the AUASB raises several other important considerations for the IAASB to contemplate when redeliberating on these proposals. In particular, the AUASB considers further clarity on the extent of work effort required by the auditor essential in circumstances where there are no events or conditions which may cast significant doubt on the entity’s ability to continue a going concern and where management have not performed a detailed assessment. The AUASB also considers it necessary for the IAASB to amend the proposals to enhance transparency in the auditor’s report by addressing several potential unintended consequences.
Should you have any queries regarding this submission, please contact the AUASB at [email protected].