All 18 Going Concern questions
More in Going Concern
What is the going concern assumption? Whose responsibility is the going concern assessment? What basis of accounting is used if an entity is not a 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 time period does the going concern assessment cover? What are mitigating factors in a going concern assessment? What disclosures are required when there is significant going concern doubt?
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What is the difference between going concern doubt and actual insolvency?

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Answer

Going concern doubt means events/conditions cast significant uncertainty on the entity's ability to continue—it may still recover. Insolvency is an inability to pay debts as they fall due or having liabilities exceeding assets, a more definite financial failure that may trigger liquidation. Doubt can exist without insolvency, and disclosure/assessment differ accordingly.
Real-world example A company breaching a covenant faces going concern doubt but may cure it, whereas insolvency implies it can't meet obligations at all.

Common follow-ups: Can doubt exist without insolvency? | What does insolvency typically trigger?

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All 18 Going Concern questions