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Proposed Statement on Auditing Standard on Going Concern Issued

The American Institute of Certified Public Accountants’ Auditing Standards Board (“ASB”) has proposed a Statement on Auditing Standard (“SAS”) concerning an auditor’s responsibilities during the audit of financial statements with regard to going concern and the impact on the auditor’s report. Issued as the exposure draft Proposed Statement on Auditing Standards: The Auditors Consideration of an Entity’s Ability to Continue as a Going Concern, the proposed SAS uses a neutral accounting framework approach that can be applied to financial statement audits prepared under various frameworks.

Specifically, the biggest changes proposed are the requirements pertaining to audits of special purpose frameworks, and audits of single financial statements and items of a financial statement. Other proposed changes relate to interim financial information requirements. If adopted, the ASB anticipates the proposed SAS to become applicable to financial statement audits for periods beginning on or after December 15, 2017, as well as for interim periods starting thereafter.

Comments on the proposal are due Monday, September 5.

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