Going concern is an important syllabus area for Paper F8 and candidates attempting the exam must ensure they are familiar with the requirements of the syllabus. This article has covered management’s responsibility, the auditor’s responsibility, indicators that an entity may not be a going concern and the reporting aspects relating to going concern. Candidates need to be aware that the syllabus also requires them to:
define and discuss the significance of the concept of going concern
explain the importance of, and the need for, going concern reviews, and
discuss the disclosure requirements in relation to going concern issues.
Candidates are therefore encouraged to practise as many exam standard questions as possible as the syllabus offers a variety of ways in which the concept of going concern can be examined.