Monday, 4 March 2019

UK: FRC consults on revised going concern standard for auditors

The Financial Reporting Council has published for consultation proposed revisions to its current standard on going concern (ISA UK 570, pdf). A copy of the revised standard is available here (pdf) and the accompanying exposure draft is available here (pdf).

The FRC states, in its press release, that its proposals will "... increase the work required of auditors when assessing whether an entity is a going concern. The consultation ... follows concerns about the quality and rigour of audit and well-publicised corporate failures where the auditor’s report failed to highlight concerns about the prospects of entities which collapsed shortly after as well as findings recent FRC Enforcement cases.  In proposing these revisions, requirements on UK auditors will be significantly stronger than those required by international standards".

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