New Audit Reporting Challenges: Auditing the Going Concern Basis of Accounting

For decades, the audit profession has been overwhelmed with a series of polemics, which led to the need of essential reform and developments. This study aims to investigate what is the users’ opinion about IAASBs new audit reporting proposals regarding the revision of the ISA570 – Going Concern. This proposal comes after several scandals related to audit reporting on going concern have decreased user confidence in the audit profession. We achieve this objective by examining comment letters sent to the IAASB by respondents from the EU. We have found that most of the replies either have concerns with IAASBs proposals or are completely disagreeing with them, as they would bring no value to users and do nothing to reduce the expectation gap. Still, most users salute the revision process and urge the IAASB to closely work with other bodies for this matter. We conclude that the proposals from Exposure Draft will most likely have a positive effect on audit reporting, after their final revision.