Going Concern Assessments: Subsequent Events, Auditor Judgment, Documentation, and Financial Statement Disclosures

This webinar will provide accounting and audit practitioners with a practical framework for evaluating, documenting, and disclosing going concern issues under ASC 205-40, Presentation of Financial Statements — Going Concern, and AU-C Section 570, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern. Our accomplished panel will walk through management's responsibilities, the auditor's independent assessment obligations, and the disclosure requirements that apply when substantial doubt is raised, alleviated, or remains unresolved.

Management is responsible for assessing whether conditions or events raise substantial doubt about an entity's ability to continue as a going concern and "… should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable)", ASC 205-40. Conditions that may indicate substantial doubt include substantial operating losses, lack of working capital, and adverse operational or external developments that affect an entity's ability to meet its obligations.

Auditors must assess management's evaluation, including subsequent events, to determine whether financial statement and disclosure requirements are met. The resulting assessment also influences the audit opinion issued: unmodified, qualified, or adverse. Auditors must understand the nuances of going concern engagements and the relevant reporting criteria. 

Listen as our distinguished panel of audit and accounting practitioners guides CPAs through the mechanics of ASC 205-40 and AU-C Section 570, and addresses documentation and disclosure requirements for entities facing hardships in today's economic environment.