LSCA Business
Going Concern Assessments - use the right forecasting tools for the job! n Edition 27 of Chartered One we considered the different interpretations of the Going Concern Statement required under IFRS and FRS and pointed out that both the FRC and the ICAEW had issued guidance during 2020 to assist management and auditors with the tricky matter of Going Concern assessments in the Covid era.
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Not long after we had gone to press, the FRC issued a further news release which confirmed audit firms have implemented additional measures to enhance their evaluation of companies’ Going Concern assessments since the start of the Covid-19 pandemic1. That was the good news. The results of the review itself were carried on a separate linked document, here, which identified that the review was on a sample of eleven audits which covered the seven largest UK audit firms. Some of this could be considered the not so good news!
1. https://www.frc.org.uk/news/november-2020/audit-firms-enhance-going-concern-assessments
Picture Credits - https://cfo.economictimes.indiatimes.com/
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