IRBA Adopts ISA 570 (Revised 2024) Going Concern

Posted 19 September 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Independent Regulatory Board for Auditors (IRBA) has approved the adoption of the International Standard on Auditing (ISA) 570 (Revised 2024), Going Concern, for use by auditors in South Africa.

The Independent Regulatory Board for Auditors (IRBA) Board approved the International Standard on Auditing (ISA) 570 (Revised 2024), Going Concern, along with conforming and consequential amendments to other international standards. This endorsement follows the release of the revised standard by the International Auditing and Assurance Standards Board (IAASB) on 9 April 2025.

The revised standard is designed to address corporate failures by enhancing the auditor’s evaluation of management’s assessment of an entity’s ability to continue as a going concern. It aims to increase consistency in auditing practices and strengthen transparency through improved communications and auditor reporting. Key changes introduced by ISA 570 (Revised 2024) include:

  • Enhanced requirements for the auditor to evaluate management’s assessment of going concern;
  • Increased focus on the auditor’s evaluation of whether management’s judgements and decisions indicate potential bias;
  • Improved transparency in the auditor’s report regarding going concern matters; and
  • Strengthened requirements for the auditor to consider all relevant information obtained during the audit.

The ISA 570 (Revised 2024) and related amendments become effective for audits of financial statements for periods beginning on or after 15 December 2026. Early adoption of the standard is permissible.

Click here to download the IRBA Communiqué on ISA 570 (Revised 2024).

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

  • For yourself: You must update your technical competency regarding the revised requirements for evaluating management bias and the expanded reporting obligations under the new standard.
  • For your business: Audit firms must update their internal audit methodologies, working paper templates, and quality management systems to ensure compliance with the revised standard before the December 2026 effective date.
  • For your clients: Entities will be subject to more rigorous scrutiny of their going concern assessments and may be required to provide more detailed evidence and documentation to support their viability claims.

Originally published at https://accountingacademy.co.za/news/read/irba-adopts-isa-570-revised-2024-going-concern

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