The American Institute of CPAs’ Auditing Standards Board has revised its standard for going concern opinions.
The new standard, Statement on Auditing Standards No. 132, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (AICPA, Professional Standards, AU-C sec. 570), supersedes SAS No. 126 of the same title. SAS No. 132 says the auditor’s objectives include separate determinations and conclusions on the use of the going concern basis of accounting, when relevant, in preparing financial statements. The determinations and conclusions should also be based on the audit evidence on whether substantial doubt exists about an entity’s ability to continue as a going concern for a reasonable amount of time.
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