FRC consults on stronger going concern standard for auditors
Released 04 March 2019
The Financial Reporting Council (FRC) is consulting on increasing the work required of auditors when assessing whether an entity is a going concern.
The consultation on important revisions to International Standard on Auditing (ISA) (UK) 570 Going Concern 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 from recent FRC enforcement cases. In proposing these revisions, requirements on UK auditors will be significantly stronger than those required by international standards. The consultation period closes at 5pm on Friday 14 June 2019.
For more information, see FRC consults on stronger Going Concern standard for auditors.