New standard ISA UK 570 requires auditors to challenge management’s assessment of going concern more robustly—and firms to be as transparent as possible amid current uncertainty.
"A clean bill of health"—the much sought-after words for billions of people around the world during the coronavirus pandemic.
Throughout these unprecedented times, there has been and will continue to be a tragic human cost along with a devastating economic impact. Companies too are searching for their very own clean bill of health, particularly the ability to continue trading as a going concern.
Going concern in the current climate is proving a challenging issue for directors, audit committees and indeed auditors. Even predating Covid-19, it was very much on the minds of regulators, auditors, directors, management and the media.
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The European Court of Justice has published guidance on "gun-jumping", a failure by merging parties to comply with the “standstill obligation”, which requires companies to seek clearance by a competition authority before implementing a merger.