Effective Techniques for Auditing Contingencies and Going Concern

Description

Recent developments in the political landscape have made a complicated business, legal, accounting, and regulatory environment even more challenging to navigate. The uncertainty as to how the new federal policies will play out means that businesses must be more alert and nimbler. Needless to say the business environment is fraught with risk and uncertainty has given rise to more contingencies than in the past as well as the possibility that many entities may not be able to continue as going concerns.

Accounting and auditing literature has evolved over the past years, especially in the area of management and the auditor's responsibilities related to the entity's ability to continue as a going concern. Contingency literature has not evolved much but the elements that give rise to contingencies have expanded as has the need for fair presentation. This means that even if there is no specific disclosure related to a transaction type or activity the disclosures to reach fair presentation must be made, no matter the financial reporting framework. Simply put, fair presentation is a "true and fair view" which provides the user of the financial statements with a faithful representation of the economic activities of the reporting entity.

This course is part of the 2025 Accounting and Auditing Conference Bundle. Purchase the conference bundle here.