The Auditing Standards Committee (the Committee) of the Institute has developed a draft “Guide on Auditor’s Responsibilities Relating to Going Concern Assumption in an Audit of Financial Statements” (the Guide). The Guide aims to improve understanding of the going concern assessment, auditor responsibilities including the audit procedures and reporting considerations.
The Committee has decided to publish the Exposure Draft (ED) of the Guide for the purpose of members’ consultation. Going concern has been highlighted as an area with significant reporting and auditing attention that require enhanced understanding and better documentation. The issues involve management assessment of going concern, adequacy of related disclosures in the financial statements, audit considerations of going concern and auditor reporting of going concern.
Further, in view of the enhanced auditor reporting requirements emanating from new and revised auditing standards and substantive issues with potential impact on the audit quality, development of a guide on the audit considerations of going concern was considered necessary for the benefit of the members.
You are invited to offer your comments on the ED of the Guide. The comments would be more helpful if they indicate the specific paragraph or group of paragraphs/ appendix of the ED, to which they relate, clearly explaining the issue(s), and providing a suggestion for the alternative text or solution preferably giving rationale for the suggested change.
The full text of the draft standard can be downloaded from the Institute’s website at: http://www.icap.net.pk/downloads
You are requested to send your valued comments on the ED to the Directorate of Technical Services at dtscomments@icap.org.pk latest by March 24, 2017.