Going Concerns: New Issues 2021

Author: Pat Patterson

The FASB has released Accounting Standards Update (ASU) 2014-15—Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The release was in August of 2014. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted, and the amendments in this Update apply to all entities. In addition the AICPA’s Auditing Standards Board has released Statement on Auditing Standards No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted). This Statement on Auditing Standards is effective for audits of financial statements for periods ending on or after December 15, 2012. SAS No. 126 addresses the auditor’s responsibilities in an audit of financial statements with respect to evaluating whether there is substantial doubt about the entity's ability to continue as a going concern. This SAS applies to all audits of financial statements regardless of whether the financial statements are prepared in accordance with a general purpose or a special purpose framework. In addition, the FASB has released ASU No. 2013-07 in April 2013, Presentation of Financial Statements (Topic 205) Liquidation Basis of Accounting.

This two-hour on-demand course will assist you in obtaining a reasonable and high-level of understanding of financial reporting issues involving the issue of Going Concerns and the relationships of the AICPA and the FASB.

Publication Date: March 2021

Designed For
Professionals in public practice, business, industry, government, and education who deal with nonpublic entities and need a course on how to handle the major GAAP and GAAS issues of “going concerns”.

Topics Covered

• Overview and Background Information
• Professional A & A Standards
• 1.320.020 Status of Financial Accounting Standards Board
• Auditing Standards
• Quality Control
• International Standards
• ASB's New "Going Concern" Standard
• SAS 132
• Some of the Issues
• Changes to Changes
• Going Concern and Audit Issues
• Top 10 Audit Deficiencies
• The Top Three of the Top Ten
• Sufficient Appropriate Audit Evidence
• Sources of Audit Evidence
• Audit Procedures for Obtaining Audit Evidence
• Information to Be Used as Audit Evidence
• Reliability of Information Produced by a Management's Specialist
• Exercising Due Professional Care
• 0.300.060 Due Care
• Professional Skepticism
• Our Professional Ethics

Learning Objectives

• Recognize the professional standards that relate to Going Concerns
• Describe updates on FASB Standard, ASU 2013”07, Presentation of Financial Statements (topic 205): Liquidation Basis of Accounting
• Describe updates on FASB Standard, ASU 2014”15, Presentation of Financial Statements Going Concern (Subtopic 205”40) Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern
• Describe updates on AICPA's ASB's SAS No. 132, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern
• Recognize and apply professional standards that relate to Going Concerns
• Describe updates on FASB Standard, Asu 2013”07, Presentation of Financial Statements (topic 205): Liquidation Basis of Accounting
• Describe updates on on FASB Standard, ASU 2014”15, Presentation of Financial Statement—Going Concern (Subtopic 205”40) Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern
• Describe updates on AICPA's ASB's SAS No. 132, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern
• Identify the look-forward period for an entity with respect to going concern
• Differentiate SASs and how they apply
• Describe the top 10 audit deficiency list as noted by the Journal of Accountancy
• Differentiate GASB Statements which establishes requirements related to management's responsibilities for assessing going concern for state and local governmental entities
• Identify the audit deficiencies included in the top 3 according to the Journal of Accountancy
• Identify the measure of the quality of audit evidence

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Experience in accounting and application of financial reporting standards.

Advance Preparation
None