New guidance from the International Auditing and Assurance Standards Board (IAASB) covers frequently asked questions (FAQs) to support stakeholders as they implement the revised standard on going concern.
The publication addresses key questions on the “enhanced auditor reporting model” for the revised International Standard on Auditing 570, Going Concern, a news release said. “Specifically, it focuses on the implications for the auditor’s report when reporting entity-specific going concern matters in a section titled Going Concern or Material Uncertainty Related to Going Concern.”
According to the release, the FAQs also aim to help stakeholders strengthen:
- More robust risk assessment procedures that support auditors in determining, on a timely basis, whether events or conditions have been identified that may cast significant doubt on the entity’s ability to continue as a going concern.
- Enhanced evaluation of management’s assessment of going concern, including the significant judgements on which such evaluation is based.
- Required evaluation of management’s assessment of going concern that covers a period of at least 12 months from the date of approval of the financial statements.
- Reinforced communications and increased transparency in reporting going concern matters.
The revised standard will come into effect on 15 December 2026. This guidance does not amend or override the standard and is intended to support the implementation process.
FRC releases new resources for SME audit support
The UK Financial Reporting Council (FRC), as part of its audit support campaign for small- and medium-size entities (SMEs), released new materials to help SMEs engage effectively with the annual audit process, a news release said.
Those materials include a summary of key considerations and principles to guide a successful audit and the public interest benefits of audits for stakeholders, investors, and employees, the release said. The regulator also posted a podcast episode discussing the crucial role audit plays in enhancing trust, confidence, and transparency in financial statements.
Stakeholders looking to engage further with the FRC’s campaign can email stakeholderengagement@frc.org.uk.
GRI opens consultation on standard alignment
The Global Reporting Initiative (GRI) opened a consultation on proposed changes intended to align new and existing GRI standards.
The proposed changes cover the alignment of all existing sector standards, a news release said. The consultation aims to ensure that disclosures and language are consistent with those of the new Biodiversity Topic Standard (GRI 101), which launched last year, and the Climate Change (GRI 102) and Energy (GRI 103) standards, scheduled for publication in June.
The consultation is open for comment until 13 July. Comments can be submitted online.
In another release, the GRI said it issued guidance on accounting for biodiversity. The release suggests standards, courses, initiatives, and case studies to help guide companies through the reporting process.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.