IRBA Adopts ISA 570 (Revised 2024) Going Concern

IRBA Adopts ISA 570 (Revised 2024) Going Concern

• 19 September 2025
• Audit
• South African Accounting Academy

Summary:
The Independent Regulatory Board for Auditors’ (IRBA) Board has approved the International Standard on Auditing (ISA) 570 (Revised 2024), Going Concern, for adoption, issue and prescription for use by auditors in South Africa. 
Article:

The approval includes the Conforming and Consequential Amendments to Other International Standards. This Board endorsement was preceded by the International Auditing and Assurance Standards Board’s release of ISA 570 (Revised 2024) on 9 April 2025 (Refer to our previous Alert dated 23 April 2025).

The revised standard responds to corporate failures that have raised questions regarding auditors’ responsibilities by significantly enhancing their work in evaluating management’s assessment of an entity’s ability to continue as a going concern. Furthermore, it is expected to increase consistency in auditing practices and strengthen transparency through communications and auditor reporting on matters related to going concern in a coherent manner.

ISA 570 (Revised 2024) introduces several key changes that include the four highlighted below.

• Robust Risk Assessment: Auditors must conduct, in a timelier manner, thorough risk assessments, to determine whether events or conditions are identified that may cast significant doubt on the entity’s ability to continue as a going concern.
• Evaluating Management’s Assessment: Auditors must evaluate management’s assessment of going concern, irrespective of whether events or conditions are identified. In doing so, they must consider the potential for management bias and then evaluate the underlying method, significant assumptions and data used when management undertook its assessment.

Additionally, auditors must evaluate whether management’s judgements and decisions indicate potential bias.

• Extended Evaluation Period: The auditor’s evaluation period for going concern has now been extended to at least 12 months from the date of approval of the financial statements, contributing to an assessment of more relevant, decision-useful information.
• Enhanced Transparency: The standard requires clearer communication in the auditor’s report about their responsibilities and work related to going concern, as well as strengthened communications with those charged with governance and external parties.

The changes in the standard are intended to further advance high-quality audits and help narrow the expectation gap, thereby supporting users’ interests and general financial stability.

ISA 570 (Revised 2024) and the related Conforming and Consequential Amendments to Other International Standards become effective for audits of financial statements for periods beginning on or after 15 December 2026. Early adoption is permissible.

Click here to download the IRBA Communiqué:

https://www.irba.co.za/upload/report_files/48.-IRBA-adopts-ISA-570-Revised-2024.pdf

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 are adopted by IRBA and become effective in South Africa.

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