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IAASB: ISA 570 approved
- 14 February 2025
- Auditing and Assurance
- South African Accounting Academy
Summary:
The International Audit and Assurance Standards Board (IAASB) has approved International Standard on Auditing 570 (Revised 2024), Going Concern – but it has not yet been published.
Article:
The Exposure Draft was issued in April 2023.
The standard will be published following certification by the Public Interest Oversight Board, which is anticipated in April 2025.
After certification and publication, the standard will be effective on audits of financial statements for periods beginning on or after 15 December 2026.
The revised going concern standard aims to promote consistent practice and behaviour from auditors when addressing going concern. The key revisions proposed:
- Seek to enable a robust identification of events or conditions that may cast significant doubt on the entities ability to continue as a going concern, strengthen the auditor’s evaluation of management’s assessment of going concern, and support the appropriate exercise of professional skepticism, including to consider the risk of management bias.
- Extend the commencement date of the twelve-month period of management’s assessment of going concern that is used as the basis for the auditor’s evaluation from the date of the financial statements to the date of approval of the financial statements.
- Enhance transparency with respect to the auditor’s responsibilities and work related to going concern, including strengthening communications and auditor reporting requirements.
To learn more about the journey to this approved standard, visit https://www.iaasb.org/consultations-projects/going-concern
Click here to access more detail on the approval of the standard:
https://www.iaasb.org/meetings/iaasb-quarterly-board-meeting-december-9-12-2024
Relevance to Auditors, Independent Reviewers & Accountants:
- As an auditor and independent reviewer, you need to comply with International Standards on Auditing and other Assurance Services, and thus you need knowledge of newly revised standards that are approved as well as when they become effective.
- Failure to adhere to ISAs may be interpreted as negligence and you could be held liable.
- Auditors, Independent Reviewers and Accountants should be aware of the latest standards that have been approved by standard-setting boards like the IAASB, when these are published, and when these standards become effective in South Africa.