IAASB proposes revisions to going concern standard

The proposed revisions are open for stakeholder comment; the IAASB also advanced its timeline on sustainability consultation.

On Wednesday, the International Auditing and Assurance Standards Board (IAASB) issued proposed revisions to its International Standard on Auditing 570 (Revised), Going Concern.

"Investors, regulators, and other stakeholders have repeatedly called for … increased transparency regarding that work in the auditor's report," IAASB Chair Tom Seidenstein said in a news release.

According to the release, the proposed changes aim to:

  • Promote consistent practice and behaviour and facilitate effective responses to identified risks of material misstatement related to going concern;
  • Strengthen the auditor's evaluation of management's assessment of going concern, including reinforcing the importance, throughout the audit, of the appropriate exercise of professional scepticism; and
  • Enhance transparency with respect to the auditor's responsibilities and work related to going concern where appropriate, including strengthening communications and reporting requirements.

The IAASB invites all stakeholders to comment on the proposed revisions. The proposals in the exposure draft may be modified in light of comments received before being issued in final form, the publication said.

Comments are requested by 24 August.

IAASB pushes sustainability consultation forward

The IAASB will advance the consultation on its proposed new standard for sustainability assurance, International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, a news release said.

Subject to the expected IAASB approval of the exposure draft in June, stakeholders can expect the public consultation on the proposed standard to open in late July or early August and extend into December, the release said. The consultation was originally scheduled to begin in October.

The advanced consultation will support two objectives. "First, the earlier publication, accompanied by a comprehensive and global outreach strategy, will enable the IAASB to gain broad and early input into the development of ISSA 5000," the release said. "Second, the advanced consultation period will better ensure the completion of the final standard in 2024."

In a recent report, the International Organization of Securities Commissions (IOSCO) highlighted the importance of having ISSA 5000 developed in accordance with due process and ready in 2024 to support a global baseline for sustainability reporting and assurance standards that meet the public interest, the release continued.

"What will be critical now, as already encouraged by IOSCO, is for issuers, investors and other users, assurance providers, national standard-setters, and others across the ecosystem to plan resources so that they can provide us their views during the consultation process," Seidenstein said in the release.

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