TAILIEUCHUNG - AUDIT CONSIDERATIONS in RESPECT of GOING CONCERN in the CURRENT ECONOMIC ENVIRONMENT

Regardless of whether the audit is done internally or externally, a common set of methods can be used to gather data needed to make assessments about practices. Methods are described briefly below in the context of a communications audit and then followed by a table that compares them on time, cost, and information yield. 4 Note that while the use of one or more of these methods is recommended, it is also possible to conduct the strategic communications audit informally by, for example, asking each staff member to give his or her own independent and subjective assessments based on. | IAASB International Auditing and Assurance Standards Board The IAASB is an independent standard-setting board of the International Federation of Accountants. AUDIT CONSIDERATIONS in respect of going concern in the CURRENT ECONOMIC ENVIRONMENT This StaffAlert references the pre-clarified ISAs. The clarified ISA are effectivefor audits offinancial statements for periods beginning on or after December 15 2009. The clarified standards can be accessed at clarity-center clarified-standards This alert is issued by staff of the International Auditing and Assurance Standards Board IAASB to raise auditors awareness about matters relevant to the consideration of the use of the going concern assumption in the preparation of the financial statements in the current environment. In particular management those charged with governance and auditors alike will be faced with the challenge of evaluating the effect of the credit crisis and economic downturn on an entity s ability to continue as a going concern and whether these effects on the entity ought to be described or otherwise reflected in the financial statements. While the Staff Audit Practice Alert Challenges in Auditing Fair Value Accounting Estimates in the Current Market Environment October 2008 refers to going concern in the context of the effects of valuation in illiquid markets this alert addresses wider issues that are likely to be relevant to auditors of entities in all industries and of all sizes. While this alert refers principally to ISA 570 other ISAs contain requirements and guidance to assist the auditor in dealing with other issues that may also require particular attention in the current environment such as inventory valuation and allowances for doubtful receivables. This alert does not take account of matters specific to industries or jurisdictions both of which will be relevant to the issues discussed below. Government responses to the crises have been substantial but varied. Thus

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