... 5viewedasaguaranteethatfutureeventsorconditionswillnotresultintheentityceasingtocontinueasagoingconcern.Nevertheless,thecurrenteconomicconditionsdonotchangeeithermanagementsortheauditorsresponsibilityrelatingtothegoingconcernassumption.Thereisnodoubtthattheeventsofthepastyearandtheoutlookforthefuturepresentchallengesthatwillneedtobeconsideredbymanagementandauditorsalikeinmeetingthoseresponsibilities.TheISAdescribesfactorsthatmayberelevanttomanagementsuseofthegoingconcernassumptionandgivesexamplesofeventsorconditionsthatmaycastsignicantdoubtonthegoingconcernassumptionincluding,butnotlimitedto,anumberofnancialeventsthatarebecomingmoreprevalentinthecurrentenvironment,16suchas:ã ... Considerationoftheneedforanemphasisofmatterparagraphintheauditorsreportwillbeadifcultmatterofjudgmenttobemadeinthecontextoftheentityscircumstances;themereexistenceofthecreditcrisis,thoughreferredtointhenancialstatements,doesnotofitselfcreatetheneedforanemphasis.ThisalertisissuedbystaffoftheInternationalAuditingandAssuranceStandardsBoard(IAASB)toraiseauditorsawarenessaboutmattersrelevanttotheconsiderationoftheuseofthegoingconcernassumptioninthepreparationofthenancialstatementsinthecurrentenvironment.Inparticular,management,thosechargedwithgovernanceandauditorsalikewillbefacedwiththechallengeofevaluatingtheeffectofthecreditcrisisandeconomicdownturnonanentitysabilitytocontinueasagoingconcernandwhethertheseeffectsontheentityoughttobedescribed,orotherwisereected,inthenancialstatements.WhiletheStaffAuditPracticeAlert,ChallengesinAuditingFairValueAccountingEstimatesintheCurrentMarketEnvironment[October2008],referstogoingconcerninthecontextoftheeffectsofvaluationinilliquidmarkets,thisalertaddresseswiderissuesthatarelikelytoberelevanttoauditorsofentitiesinallindustriesandofallsizes.WhilethisalertrefersprincipallytoISA570,otherISAscontainrequirementsandguidancetoassisttheauditorindealingwithotherissuesthatmayalsorequireparticularattentioninthecurrentenvironment,suchasinventoryvaluationandallowancesfordoubtfulreceivables.Thisalertdoesnottakeaccountofmattersspecictoindustriesorjurisdictions,bothofwhichwillberelevanttotheissuesdiscussedbelow.Governmentresponsestothecriseshavebeensubstantial,butvaried.Thusinsomejurisdictionscertainaspectsofcreditavailabilitymayhavebeenresolvedwhileotherscontinuetocausedifculties;andtheparticularmatterstackledbygovernmentsmaydifferasbetweenjurisdictions.Similarly,governmentshavebeenconsideringassistancetocertainindustries,thenatureofwhichmayhaveamaterialeffectonthemattersdiscussedinthisalert.Further,theeffectofthecreditcrisisandeconomicdownturnvariesbothastoitsseverityandtimingdependingontheindustryandthejurisdiction. AUDIT CONSIDERATIONS in RESPECT of GOING CONCERN in the CURRENT ECONOMIC ENVIRONMENT This Staff Alert references the pre-claried ISAs. The ... Statements and the Implications for the Auditors ReportBasedontheauditevidenceobtained,theauditorconcludeswhethermanagementsuseofthegoingconcernassumptioninthepreparationofthenancialstatementsisappropriateanddetermineswhattypeofopinionistobeissuedinthecircumstances.Iftheauditorconcurswithmanagementsassessment,anunqualiedopinion...