reason, most financial reporting frameworks that require an explicit management assessment specify the period for which management is required to take into account all available information. The size and complexity of the entity, the nature and condition of its business and the degree to which it is affected by external factors affect the judgment regarding the outcome of events or conditions. Any judgment about the future is based on information available at the time at which the judgment is made. Subsequent events may result in outcomes that are inconsistent with judgments that were reasonable at the time they were made. Responsibilities of the Auditor The responsibilities are to obtain sufficient appropriate audit evidence regarding, and auditor’s conclude on, the appropriateness of of the going concern basis of accounting in management’s use the preparation of the financial statements, and to conclude, based on the audit evidence obtained, whether a material uncertainty exists about the to continue as a going concern. entity’s ability These responsibilities exist even if the financial reporting framework used in the preparation of the financial statements does not include an explicit requirement for management to make a specific assessment of the to continue as a going concern. entity’s ability However, as described in PSA 200, the potential effects of inherent limitations on the auditor’s ability to detect material misstatements are greater for future events or conditions that may cause an entity to cease to continue as a going concern. The auditor cannot predict such future events or conditions. Accordingly, the absence of any reference to a material uncertainty about the entity’s ability to continue as a going concern in an report cannot be viewed as a guarantee as to auditor’s the ability to continue as a going concern. entity’s Effective Date This PSA is effective for audits of financial statements for periods ending on or after December 15, 2016. Objectives The objectives of the auditor are: To obtain sufficient appropriate audit evidence regarding, and conclude on, the appropriateness of use of the going concern basis of accounting in the management’s preparation of the financial statements; To conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to entity’s continue as a going concern; and To report in accordance with this PSA. Requirements Risk Assessment Procedures and Related Activities When performing risk assessment procedures as required by PSA 315 (Revised), the auditor shall consider whether events or conditions exist that may cast significant doubt on the ability to entity’s continue as a going concern. In so doing, the auditor shall determine whether management has
reason, most financial reporting frameworks that require an explicit management assessment specify the period for which management is required to take into account all available information. The size and complexity of the entity, the nature and condition of its business and the degree to which it is affected by external factors affect the judgment regarding the outcome of events or conditions. Any judgment about the future is based on information available at the time at which the judgment is made. Subsequent events may result in outcomes that are inconsistent with judgments that were reasonable at the time they were made. Responsibilities of the Auditor The auditor’s responsibilities are to obtain sufficient appropriate audit evidence regarding, and conclude on, the appropriateness of management’s use of the going concern basis of accounting in the preparation of the financial statements, and to conclude, based on the audit evidence obtained, whether a material uncertainty exists about the entity’s ability to continue as a going concern. These responsibilities exist even if the financial reporting framework used in the preparation of the financial statements does not include an explicit requirement for management to make a specific assessment of the entity’s ability to continue as a going concern. However, as described in PSA 200, the potential effects of inherent limitations on the auditor’s ability to detect material misstatements are greater for future events or conditions that may cause an entity to cease to continue as a going concern. The auditor cannot predict such future events or conditions. Accordingly, the absence of any reference to a material uncertainty about the entity’s ability to continue as a going concern in an auditor’s report cannot be viewed as a guarantee as to the entity’s ability to continue as a going concern. Effective Date This PSA is effective for audits of financial statements for periods ending on or after December 15, 2016. Objectives The objectives of the auditor are: To obtain sufficient appropriate audit evidence regarding, and conclude on, the appropriateness of management’s use of the going concern basis of accounting in the preparation of the financial statements; To conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern; and To report in accordance with this PSA. Requirements Risk Assessment Procedures and Related Activities When performing risk assessment procedures as required by PSA 315 (Revised), the auditor shall consider whether events or conditions exist that may cast significant doubt on the entity’s ability to continue as a going concern. In so doing, the auditor shall determine whether management has
PSA-570-Revised-clean.docx