The International Auditing and Assurance Standards Board has released a new
practice alert aimed at helping auditors and compliance managers cope with the
The alert urges auditors and those responsible for governance to consider the
effect of the economic downturn on their company and whether these impacts
should be described in the financial statements.
It highlights auditing standards that are most relevant in a downturn, such
as International Standard on Auditing 570, Going Concern.
James Sylph, the IAASB’s executive director, professional standards says
managers and auditors should consider the availability of credit, and the impact
of current conditions on budgets and forecasts.