IAASB Issues FAQ on ISA 570 (Revised 2024) Going Concern

Posted 28 May 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The International Auditing and Assurance Standards Board (IAASB) has published a Frequently Asked Questions (FAQ) document to support the implementation of the revised auditor reporting model for going concern.

In terms of International Standard on Auditing 570 (Revised 2024), Going Concern, the IAASB has provided guidance addressing eight key questions regarding the enhanced reporting requirements. The document specifically focuses on the implications for the auditor’s report when reporting entity-specific going concern matters within sections titled ‘Going Concern’ or ‘Material Uncertainty Related to Going Concern.’

The FAQ document includes an illustrative example of an auditor’s report. This example demonstrates how an auditor provides a description of the procedures performed to evaluate management’s assessment of the entity’s ability to continue as a going concern. While the FAQ provides implementation support, it does not amend or override the authoritative text of ISA 570 (Revised 2024).

Key focus areas of the FAQ include:

  • The structure and content of the enhanced auditor reporting model.
  • Reporting entity-specific matters in the ‘Going Concern’ section.
  • The interaction between the auditor’s evaluation and the final report disclosures.
  • Practical application of the revised standard in diverse reporting environments.

ISA 570 (Revised 2024) was published in April 2024 and is effective for audits of financial statements for periods beginning on or after 15 December 2026. The standard introduces strengthened requirements for the auditor’s work in evaluating management’s assessment and increases transparency in the resulting audit report.

Click here to download the IAASB ISA 570 (Revised 2024) Frequently Asked Questions.

What this means for you, your business, or your clients

  • For yourself: You must familiarise yourself with the eight questions in the FAQ to understand the practical shift in reporting obligations before the 2026 effective date.
  • For your business: Audit firms must begin updating internal audit methodologies and reporting templates to accommodate the entity-specific descriptions required under the revised ‘Going Concern’ sections.
  • For your clients: Clients should be advised that audit reports will become more granular, requiring management to provide robust evidence for their going concern assessments which will now be explicitly described by the auditor.

Originally published at https://accountingacademy.co.za/news/read/iaasb-new-faq-on-going-concern

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