Statements of Position



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Because businesses sometimes fail shortly after auditors have expressed unqualified opinions on their financial statements, the public has questioned whether auditors have assumed sufficient responsibility for evaluating the continued existence of an entity. The Auditing Standards Board is issuing this proposed statement on auditing standards to better serve the users of financial statements by requiring the auditor to evaluate continued existence in all audits and to modify the audit report when substantial doubt exists about an entity's continued existence.

Publication Date


Relational Format



Going concern (Accounting)


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed statement on auditing standards : the auditor's consideration of an entity's ability to continue in existence ;Auditor's consideration of an entity's ability to continue in existence; Exposure draft (American Institute of Certified Public Accountants), 1987, Feb. 14



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