Excerpt FAR Masterclass 'How do auditors assess and report on going concern?' скачать в хорошем качестве

Excerpt FAR Masterclass 'How do auditors assess and report on going concern?'

How do auditors assess and report on going concern? This was the topic of the recent FAR masterclass ‘Auditors’ Going Concern Decisions: Insights from Practice’. The masterclass was based on a study by Dominic Detzen, Marshall Geiger, Anna Gold, and Philip Wallage. During the meeting, Dominic presented the background, key research findings and lessons learned from the study. The study offers an in-depth process account of auditors’ going concern decisions. It uses interviews with audit professionals in the Netherlands to investigate the decision-making processes involved in assessing and reporting on audit clients’ ability to continue as a going concern. The authors identify four interrelated stages. *First, partners must recognize going concern as a relevant and critical issue of the audit (problematization). *Second, they enlist a variety of internal and external actors to inform the assessment (interessement). *Third, these actors are coordinated and monitored in the audit team’s preliminary evaluation (enrollment). *Fourth, in consultation with national office, partners complete the going concern evaluation, including the wording of the audit opinion and approve the related financial statement disclosures (mobilization). Lessons learned: *Going concern decisions involve a network of actors, adapted to specific client engagements: there is high need for coordination & communication. *There are two key decision points that require much professional judgment: (1) recognizing a potential GC issue; and (2) determining material uncertainty. *Going concern decision-making is a ‘human process’, implying: (1) a role of auditor conscientiousness and ability to take along the client in the process; (2) embedding of auditors in a firm support network; and (3) time commitment of involved parties Want to dig deeper? Here’s the link to a half hour summary:    • 30 minute summary FAR Masterclass 'How do ...   Do you want some more background, or you like to read instead of listen? Here’s a Practice note related to the presentation: https://foundationforauditingresearch...