Explore whether there is a need for guidance, changes to PCAOB standards, or other regulatory actions.
The auditor's evaluation of a company's ability to continue as a going concern is an important part of an audit under PCAOB standards and federal securities law. Changes in the relevant accounting requirements, and concerns from investors about the effectiveness of auditor going concern reporting, have prompted questions about the need for changes to AS 2415, Consideration of an Entity's Ability to Continue as a Going Concern. Staff considerations include, among other things, input from the SAG and IAG, observations from PCAOB oversight activities, relevant research, and outreach.
The staff is monitoring the effect on audits of the changes to the relevant accounting standards. In the meantime, AS 2415, Consideration of an Entity's Ability to Continue as a Going Concern, and Staff Audit Practice Alert No. 13 continue to provide the applicable requirements and guidance.