![]() ![]() Response: AU-C section 700 requires the auditor to use the applicable financial reporting framework to form an opinion on whether the financial statements are presented fairly, in all material respects. Question: AU-C section 570 refers to the phrase substantial doubt about an entity’s ability to continue as a going concern but does not define it how should an auditor apply this term? ![]() ![]() Auditors are required to consider applicable interpretive publications in planning and performing an audit because interpretive publications can be relevant to the proper application of GAAS.)Įach of the four interpretations presents a Question and a responding Interpretation, and each is summarized below: Auditing interpretations of GAAS are included in AU-C sections. (Note: Auditing interpretations of generally accepted auditing standards (GAAS) are interpretive publications they are issued under the authority of the ASB, and are recommendations on the application of GAAS in specific circumstances. 126 addresses the auditor’s responsibilities with respect to evaluating whether there is substantial doubt about the entity’s ability to continue as a going concern. The standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. In 2014, the FASB released Accounting Standards Update (ASU) No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted) (AICPA, Professional Standards, AU-C Section 570). On January 24, 2015, the AICPA Auditing Standards Board (ASB) issued four auditing interpretations to address issues related to the SAS No. ![]()
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