Going Concerns: New Issues 2019 (Currently Unavailable)

Author: Pat Patterson

The FASB has released Accounting Standards Update (ASU) 2014-15—Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The release was in August of 2014. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted, and the amendments in this Update apply to all entities. In addition the AICPA’s Auditing Standards Board has released Statement on Auditing Standards No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted). This Statement on Auditing Standards is effective for audits of financial statements for periods ending on or after December 15, 2012. SAS No. 126 addresses the auditor’s responsibilities in an audit of financial statements with respect to evaluating whether there is substantial doubt about the entity's ability to continue as a going concern. This SAS applies to all audits of financial statements regardless of whether the financial statements are prepared in accordance with a general purpose or a special purpose framework. In addition, the FASB has released ASU No. 2013-07 in April 2013, Presentation of Financial Statements (Topic 205) Liquidation Basis of Accounting.

This two hour CPA webinar will assist you in obtaining a reasonable and high-level of understanding of financial reporting issues involving the issue of Going Concerns and the relationships of the AICPA and the FASB.

Publication Date: March 2019

Designed For
Professionals in public practice, business, industry, government, and education who deal with nonpublic entities and need a course on how to handle the major GAAP and GAAS issues of “going concerns”.

Topics Covered

• Overview and Background Information
• Professional A & A Standards
• Ethics— AICPA's Code of Professional Conduct
• International Standards (IFRS)
• ASB's New "Going Concern" Standard
• SAS 132
• In Front of the Issues
• Call for Greater Transparency
• ASB and FASB
• Changes to Auditor's Objectives and Related Conclusions
• Going Concern and Audit Problems
• Top 10 Audit Problems— Journal of Accountancy
• Gathering Sufficient Audit Evidence
• Inconsistency in, or Doubts Over Reliability of, Audit Evidence
• Sources of Audit Evidence
• Audit Procedures for Obtaining Audit Evidence
• Exercising Due Professional Care
• Professional Skepticism
• Proposed Statement on Auditing Standards Omnibus Statement on Auditing Standards— 2018
• Effective Date
• Proposed SAS Forming an Opinion and Reporting on Financial Statements (AU”C section 700)
• Significant Proposed Amendments to Existing Auditor Reporting Standards
• An Auditor's Report on Comparative Financial Statements in Accordance with GAAP in the USA

Learning Objectives

• Recognize the major problems and complexities of the issues of going concern and its impact on reporting and disclosure
• Identify and apply IASB Standard, ASU 2013”07, Presentation of Financial Statements (topic 205): Liquidation Basis of Accounting
• Recognize FASB Standard, ASU 2014”15, Presentation of Financial Statements—Going Concern (Subtopic 205”40) Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern
• Describe AICPA's ASB's SAS No. 132, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern
• Recognize proposed audit reporting and "Going Concerns"
• Describe the top three audit deficiencies identified in fraud-related SEC cases
• Recognize an entity's ability to continue as a going concern, in the preparation of financial statements
• Identify the top audit deficiency in 80 percent of the cases studied, in a recent Journal of Accountancy feature article on fraud cases
• Describe when it is unlikely that an entity will return from liquidation
• Recognize what is required for a CPA to discharge professional responsibilities with competence and diligence
• Describe statements about professional skepticism

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Experience in accounting and application of financial reporting standards.

Advance Preparation
None