All 18 Going Concern questions
More in Going Concern
Why is going concern important to users of financial statements? What is a support letter (comfort letter) in a going concern context? What are indicators that going concern may be in doubt? How does the auditor evaluate management's going concern assessment? What are mitigating factors in a going concern assessment? What disclosures are required when there is significant going concern doubt? How does going concern relate to Key Audit Matters (KAMs)? What is a material uncertainty related to going concern? How do going concern conclusions affect the auditor's report? How do you audit a cash flow forecast supporting going concern?
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Auditing & Assurance › Going Concern

What time period does the going concern assessment cover?

Intermediate

Answer

The assessment covers the foreseeable future—at least twelve months from the date of approval/authorization of the financial statements (some frameworks measure from the reporting date). The auditor also remains alert to events beyond that period. If management's assessment covers less than the required period, the auditor asks them to extend it.
Real-world example Management's forecast stops at nine months, so the auditor requests an extension to cover the full twelve-month period.

Common follow-ups: From what date is the 12 months measured? | What if the assessment is too short?

ISA Standards Audit Evidence & Procedures Going Concern
All 18 Going Concern questions