AUDIT CONSIDERATIONS in RESPECT of GOING CONCERN in the CURRENT ECONOMIC ENVIRONMENT doc

... Consideration of the needforanemphasis of matterparagraph in the auditor’sreportwillbeadifcultmatter of judgmenttobemade in the context of the entity’scircumstances; the mereexistence of the creditcrisis,thoughreferredto in the nancialstatements,doesnot of itselfcreate the needforanemphasis.Thisalertisissuedbystaff of the InternationalAuditingandAssuranceStandardsBoard(IAASB)toraiseauditors’awarenessaboutmattersrelevantto the consideration of the use of the going concern assumption in the preparation of the nancialstatements in the current environment. In particular,management,thosechargedwithgovernanceandauditorsalikewillbefacedwith the challenge of evaluating the effect of the creditcrisisand economic downturnonanentity’sabilitytocontinueasa going concern andwhethertheseeffectson the entityoughttobedescribed,orotherwisereected, in the nancialstatements.While the Staff Audit PracticeAlert,“Challenges in AuditingFairValueAccountingEstimates in the Current Market Environment [October2008],”refersto going concern in the context of the effects of valuation in illiquidmarkets,thisalertaddresseswiderissuesthatarelikelytoberelevanttoauditors of entities in allindustriesand of allsizes.WhilethisalertrefersprincipallytoISA570,otherISAscontainrequirementsandguidancetoassist the auditor in dealingwithotherissuesthatmayalsorequireparticularattention in the current environment, suchasinventoryvaluationandallowancesfordoubtfulreceivables.Thisalertdoesnottakeaccount of mattersspecictoindustriesorjurisdictions,both of whichwillberelevantto the issuesdiscussedbelow.Governmentresponsesto the criseshavebeensubstantial,butvaried.Thus in somejurisdictionscertainaspects of creditavailabilitymayhavebeenresolvedwhileotherscontinuetocausedifculties;and the particularmatterstackledbygovernmentsmaydifferasbetweenjurisdictions.Similarly,governmentshavebeenconsideringassistancetocertainindustries, the nature of whichmayhaveamaterialeffecton the mattersdiscussed in thisalert.Further, the effect of the creditcrisisand economic downturnvariesbothastoitsseverityandtimingdependingon the industryand the jurisdiction. AUDIT CONSIDERATIONS in RESPECT of GOING CONCERN in the CURRENT ECONOMIC ENVIRONMENT This Staff Alert references the pre-claried ISAs. The ... Althoughcentralbankshavebeenreducinginterestrates in anattempttostimulate economic activity in the current environment, banksmaynotnecessarilybepassingonsuchreductionstocustomersastheyseektoimprovemarginsandreectrevisedriskassessments.5viewedasaguaranteethatfutureeventsorconditionswillnotresult in the entityceasingtocontinueasa going concern. Nevertheless, the current economic conditionsdonotchangeeithermanagement’sor the auditor’sresponsibilityrelatingto the going concern assumption.Thereisnodoubtthat the events of the pastyearand the outlookfor the futurepresentchallengesthatwillneedtobeconsideredbymanagementandauditorsalike in meetingthoseresponsibilities. The ISAdescribesfactorsthatmayberelevanttomanagement’suse of the going concern assumptionandgivesexamples of eventsorconditionsthatmaycastsignicantdoubton the going concern assumptionincluding,butnotlimitedto,anumber of nancialeventsthatarebecomingmoreprevalent in the current environment, 16suchas:• ... AssessmentOrdinarily the applicablenancialreportingframework,orsometimesrelevantlaworregulation,species the minimumtimeperiodthatmanagementisexpectedtoconsiderwhenmakingitsassessment.IAS1,forexample,requiresthat“managementtakesintoaccountallavailableinformationabout the future,whichisatleast,butisnotlimitedto,twelvemonthsfrom the balancesheetdate.”Otherframeworkslooktotwelvemonthsfrom the approval of the nancialstatements,whilestillotherslimit the considerationtotwelvemonthsfrom the balancesheetdate.ISA570requires the auditortoconsider the sameperiodasthatusedbymanagement in makingitsassessmentunder the applicablenancialreportingframework;however,ifthisassessmentcoverslessthantwelvemonthsfrom the balancesheetdate, the auditorisrequiredtoaskmanagementtoextenditsassessmentperiodtotwelvemonthsfrom the balancesheetdate.13Ifmanagementisunwillingtomakeorextenditsassessmentwhenrequestedtodosoby the auditor, the auditorisrequiredtoconsider the needtomodify the auditor’sreportasaresult of the limitationon the scope of the auditor’swork,asitmaynotbepossiblefor the auditortoobtainsufcientappropriate audit evidenceregarding the use of the going concern assumption in the preparation of the nancialstatements.14 The auditoralsoinquires of managementastoitsknowledge of eventsorconditionsandrelatedbusinessrisksbeyond the period of assessmentusedbymanagementthatmaycastsignicantdoubton the entity’sabilitytocontinueasa going concern. 15Factors...

... determining the characteristics of the engagement that define its scope, such as the financial reporting framework used and industry-specific report-ing requirements. In the case of audits of the ... of Estimation Uncertainty” or “Critical Accounting Estimates.”• The disclosure of the range of possible outcomes, and the assumptions used in determining the range.• The disclosure of information ... assist auditors by highlighting areas within the International Standards on Auditing (ISAs) that are particularly relevant in the audit of fair value accounting estimates1 in times of market...

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... including the principal. Promoting school attendance was the big drive during the inception years of Silverstream Primary. The early 1990s witnessed dwindling numbers of white learners as the ... survival of the school. As a result of the repeal of the Group Areas Act in 1991 and the official desegregation of schools in 1995, there has been a strong influx of black learners into this ... typical of those experiencing substantial desegregation. These nine schools represented the sample for the first phase of the research study. Based on the findings of the survey and a set of predetermined...

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... increasingly crowded in terms of actors and issues, have increased the challenge of maintaining the profile of SRH in sectoral and national planning processes, while at the same time the growing ... map out the changes in the aid environment experienced since the first case-studies were undertaken, the perceptions of UNFPA and WHO country office staff of their understanding of these changes, ... opportunities that the MDG5 focus brings, and seeking to map out the remaining elements of SRH into the matrix of planning processes. Family planning can be located within the evidence-based...