PracticeAuditAPB ramps up calls for ‘going concern’ perspective

APB ramps up calls for 'going concern' perspective

Auditing Practices Board backs calls for companies and auditors to consider the impacts of going concern disclosures and opinions in annual reports

The Auditing Practices Board has echoed calls for companies and auditors to
take the unprecedented markets crisis into account when arriving at going
concern assumptions.

The financial community is bracing itself for a tough annual reporting season
in the wake of the financial upheaval and in releasing a bulletin on going
concern issues today, APB chairman Richard Fleck said:

‘The current difficult economic conditions do not of themselves necessarily
mean that a material uncertainty exists about an entity’s ability to continue as
a going concern, or justify auditors modifying their auditor’s report to draw
attention to going concern.’

The APB, part of the Financial Reporting Council, decided to draw more
attention to going concern after the UK regulator put out exhaustive guidance on
the topic last month.

‘Auditors should judge the need to draw attention to going concern
uncertainties in their auditor’s reports on the basis of the facts and
circumstances of the particular entity,’ Fleck added.

The FRC urged companies to devote plenty of time to going concern
disclosures, but also appeared to ask auditors to give some leeway with their
opinions.

‘Auditors will need to ensure that they fully consider going concern
assessments
and only refer to going concern in their audit reports when appropriate,’ the
FRC said.

Read the full APB
bulletin here

Related Articles

FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

1m Alia Shoaib, Reporter
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

2m Emma Smith, Managing Editor
PwC fined a record £5.1m by the FRC over RSM Tenon audit

Audit PwC fined a record £5.1m by the FRC over RSM Tenon audit

3m Alia Shoaib, Reporter
Which top firms need to improve audit practice?

Accounting Firms Which top firms need to improve audit practice?

5m Alia Shoaib, Reporter
FRC closes investigation into PwC over Tesco accounts

Accounting Firms FRC closes investigation into PwC over Tesco accounts

5m Alia Shoaib, Reporter
BDO overtakes KPMG to take top spot in AIM auditor rankings

Accounting Firms BDO overtakes KPMG to take top spot in AIM auditor rankings

4m Alia Shoaib, Reporter
Demand for audit skills exceeding supply

Audit Demand for audit skills exceeding supply

4m Alia Shoaib, Reporter
FRC launches investigation into PwC over BT audits

Accounting Firms FRC launches investigation into PwC over BT audits

5m Alia Shoaib, Reporter