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Auditing Standards Board Issues Clarity Exposure Draft on Going Concern

November 17, 2011

The Auditing Standards Board (ASB) has issued Proposed Statement on Auditing Standards, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (Redrafted), resulting from its Clarity Project, to supersede SAS No. 59, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern, as amended (AICPA, Professional Standards, AU sec. 341 and AU-C sec. 570). Comment period ends Tuesday, Jan. 31, 2012. Although the proposed SAS represents the redrafting of SAS No. 59 to apply the ASB’s clarity drafting conventions, the ASB decided to delay convergence of the proposed SAS with International Standards on Auditing (ISA) 570, Going Concern, however, pending the FASB's anticipated development of accounting guidance addressing going concern. Read about the most significant changes to existing standards in the explanatory memorandum of the proposed SAS.