Going Concern in Times of Uncertainty

Learning Objectives

• To analyze management’s fair presentation and disclosure responsibilities relevant to the financial reporting framework.
• To describe the independent auditor’s responsibilities
• To discuss the auditor’s report format and upcoming changes to the independent auditor's report relative to going concern.

Course Description

The ongoing impact of the COVID-19 coronavirus pandemic continues to cause a significant deterioration in economic conditions for many companies and an increase in economic uncertainty for others.

Management needs to assess whether these events or conditions, either individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern or, in severe cases, whether the going concern assumption is still appropriate as a basis for the preparation of the company’s financial statements.

Although some sectors and jurisdictions are more affected than others, all companies across all jurisdictions need to consider the potential implications for the going concern assessment.

The pandemic created a challenging environment for many organizations. Some are finding their ability to continue as a going concern while meeting their obligations as they come due in doubt.

This CPE webinar will cover management and the independent auditor’s responsibilities for fair presentation and disclosure under the relevant financial reporting framework.

The American Institute of Certified Public Accountants (AICPA) Auditing Standards Board issued a new auditing standard SAS 134 that impacts several aspects of an audit.

Change can be difficult, but proper lines of communication and a mutual understanding of the impending change will undoubtedly result in a successful outcome. Management and their auditors should start discussing the impact of these changes as soon as feasibly possible to set each party up for success in the coming audit season.

Key Topics Covered: 

• Applicable Guidance
  
• Terminology: Substantial Doubt
• Indicators of Conditions or Events
• Management’s Mitigation Plan
• Management’s Reporting Responsibilities
• Auditors Responsibilities
• Audit Procedures
• Auditors' Documentation & Conclusion
• Auditors Report Modified Report
• SAS No. 134 Changes to Audit Report KAM
• Other Reporting Matters

In this CPE course, the speaker will then discuss the auditor’s report format and upcoming changes to the independent auditors' report under SAS 134.

Overview

• Terminology: Substantial doubt

  7 mins
• Management's mitigation plan

  13 mins
• Auditors responsibilities

  23 mins
• Auditors documentation & Conclusion

  36 mins
• Auditors report modified report

  45 mins