The course was previously known as "Going Concern Risk In A Post Pandemic World"

Programme Objective

This course aims to provide a comprehensive understanding of the responsibilities of auditors and management on the going concern concept in line with governing standards. Through hands-on reviews of industry cases, participants will learn to identify key indicators of potential going concern issues and explore the necessary disclosure requirements. The course also includes a discussion on the IAASB’s targeted revisions to ISA 570 Going Concern and their expected impact on the Singapore business landscape.

On the completion of this course, you will be able to:

• Describe the responsibilities of auditors regarding going concern in accordance to the governing standards;
• describe the responsibilities of management regarding going concern in accordance to the governing standards;
• identify indicators where an entity may not be a going concern;
• discuss the disclosure requirements in relation to going concern issues; and
• discuss the IAASB’s targeted revisions for ISA 570 Going Concern and expected Singapore impact

Programme Outline

The concept of “Going Concern” and its importance in the business landscape

• What does “going concern" mean in accounting and auditing?
• Industry examples of corporations that have encountered “going concern” issues
• The importance of addressing “going concern” for auditors, accountants and stakeholders

Governing regulations and the roles of auditors and management

• The applicable governing standards relating to going concern
• The responsibilities of management regarding going concern in accordance to the governing regulations
• The responsibilities of auditors regarding going concern in accordance to the governing regulations
• Industry examples of going concern issues and its impact to stakeholders and auditors

Indicators of going concern issues in a corporation

• The indicators of going concern issues in a corporation
• What indicators should auditors be looking out for with regards to going concern?
• Discussion of practical scenarios:
  • Scenario 1 Audit Client A’s factory burned down after year end
  • Scenario 2 Audit Client B lost major contracts after year end
  • Scenario 3 Audit Client C’s Financial Controller resigned without any handover

Recent findings by the governing bodies relating to going concern

• The Financial Reporting Council's (FRC) findings relating to going concern
• Adopting strengths identified and addressing areas of weakness
• Performing an effective and robust audit assessment
• Documenting your audit assessment, findings and conclusion

Recommendations and guidance by the IAASB

• Discussion on the summary of recommendations issues by IAASB based on the scenario and severity of going concern issues
• Discussion on sample disclosure requirements in relation to going concern issues
  • material uncertainty relating to going concern
  • modified opinion

Audit procedures and practical considerations

• What is a letter of financial support?
• The audit issues to consider if the letter of financial support is provided by a corporation (ie related party, holding company)
• The audit issues to consider if the letter of financial support is provided by an individual (ie director, shareholder)
• Who should the letter of financial support be signed by?
• The effective procedures to assess the ability of the provider
• The recommended audit documentation for such situation
• Discussion on procedures and documentation relating to going concern assessment, with references from the ISCA Audit Manual and IFAC

Changes to the current governing standards relating to going concern

• The IAASB’s targeted revisions for ISA 570 Going Concern
• The expected impact on the Singapore business landscape
• The impact on management's responsibilities
• The impact on auditor's responsibilities

 

Training Methodology

Lecture style, with breakout sessions discussing industry case studies and audit working papers

Closing Date for Registration

1 week before programme or until full enrolment

Intended For

A foundation to intermediate level course intended for Auditors

Competency Mapping

Category 3 = 3.50 Hours

Programme Facilitator(s)