Going Concern Accounting and Auditing Issues

Course Description:

Preparing and reporting on entities with going concern issues is not new. During the 1970s, auditors became responsible for identifying and evaluating information contrary to the going concern assumption. Depending on the severity of the uncertainty, the reporting choice at that time was either a “subject to” opinion or a disclaimer of opinion.

This course will discuss the changes made in preparing and reporting on entities with going concern issues throughout the years and the fundamental concepts of the going concern assumption.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Understand the fundamental concepts of the going concern assumption
• Identify information contrary to the going assumption
• Understand managements’ and responsibilities for detecting, disclosing and reporting on going concern issues
• Be able to prepare financial statements, footnotes and auditors’ and accountants’ reports when going concern problems are present