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Update from IAASB

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On 1 August 2022, the International Auditing and Assurance Standards Board (IAASB) issued a non-authoritative publication to address some of the common questions related to reporting going concern matters in an auditor’s report. Specifically, the publication focuses on the use of and interrelationship between the Material Uncertainty Related to Going Concern (MURGC), Key Audit Matters (KAM) sections, and the Emphasis of Matter (EOM) paragraphs in an auditor’s report, prepared in accordance with the International Standards on Auditing (ISAs). The publication also includes a diagram that walks users through the use of MURGC, KAM sections and EOM paragraphs and the corresponding impact on auditor reporting:

(Source: IAASB Frequently Asked Questions - Reporting Going Concern Matters in the Auditor’s Report, August 2022)

To access the IAASB publication, please click here

Action Points for Auditors

Due to the COVID-19 pandemic, various instances came to light wherein the existence of material uncertainty led to a significant doubt on the entity’s ability to continue as a going concern. In this regard, the IAASB publication reiterates the basic principles of MURGC, KAM and EOM and their corresponding implications on an audit opinion and an auditor’s report.

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