IAASB issues new FAQs for reporting going concern matters

The International Auditing and Assurance Standards Board (IAASB) has issued a nonauthoritative publication to address some common questions related to reporting going concern matters in the auditor’s report. Specifically, the publication focuses on the use of and interrelationship of the Material Uncertainty Related to Going Concern (MURGC) and Key Audit Matters (KAM) sections, and the Emphasis of Matter (EOM) paragraphs in an auditor’s report prepared in accordance with the International Standards on Auditing (ISAs). The publication was developed by the IAASB’s Going Concern Task Force. Some of the frequently asked questions include:

• Do material uncertainty related to going concern, key audit matters, and the emphasis of matter apply to all audits?
• What are the implications for the auditor’s opinion and the auditor’s report of material uncertainty related to going concern, key audit matters, and emphasis of matter?
• When no material uncertainty related to going concern exists, can going concern matters be communicated as a key audit matter in the auditor’s report? Or can they be reported as an emphasis of matter?

This publication does not amend or override the ISAs, the texts of which alone are authoritative, and reading the publication is not a substitute for reading the ISAs, the IAASB said.