Assessing the entity's ability to continue as a going concern over the next 12 months.
To obtain sufficient appropriate audit evidence regarding management's use of the going-concern basis, and to conclude on whether a material uncertainty exists.
SA 570 sits in the Concluding phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 570 into practice — built from the ICAI working-paper set, free to download.
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SA 570 — Going Concern (Revised) — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Assessing the entity's ability to continue as a going concern over the next 12 months. To obtain sufficient appropriate audit evidence regarding management's use of the going-concern basis, and to conclude on whether a material uncertainty exists.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 570 in the concluding phase, that means evidencing: Evaluation of management's assessment of going concern (period of at least 12 months from FS date); Identification of events / conditions that may cast significant doubt; Evaluation of management's plans for future actions.
