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4 Things to Know About the New Going Concern Auditing Standard Logo aicpa

  Hiram Hasty |   Free |   AICPA |   08 Mar 2017 |   AICPA Insights

In light of changes to accounting standards in recent years, the AICPA Auditing Standards Board issued a new statement on auditing standards, SAS No. 132, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern. This blog post discusses how the standard will help auditors plan and conduct their audits since it brings consistency and greater clarity to the treatment of this important topic.

Topics covered:
  • Assurance: Technical: Audit: Going concern, Foundational

1 Comments/Reflections

Chris .

Chris . Oct 2022

The New Going Concern Standard puts the onus on the management to declare (with insights from the auditor) of the organization's ability to continue in the coming year. Additionally, the declaration stretches to at least 3 months after the following year. Another important thing is that it requires a support letter from the manager or the holding company (when deemed necessary) and the auditor has the right to evaluate the intent and financial ability of the holding company to support the subsidiary (if and when needed).