Going Concern: SAS 132 (Currently Unavailable)

Author: Pat Patterson

CPE Credit:  2 hours for CPAs

Expert Pat Patterson, CPA, guides you through the new professional standard SAS 132 from the AICPA’s Audit Standards Board (ASB). “The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern” represents many significant changes in authoritative professional standards concerning going concern issues. This topic represents changes to the Generally Accepted Auditing Standards (GAAS) concerning “going concern” reporting for entities. The changes Supersede Statement on Auditing Standards (SAS) No. 126, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern [AICPA, Professional Standards, AU-C sec. 570]; amends SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, section 800, Special Considerations—Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks, as amended, and section 930, Interim Financial Information [AICPA, Professional Standards, AU-C sec. 800 and 930].

Publication Date: July 2017

Designed For
Professionals in public practice, industry, government, and education who deal with or are a part of entities that may have a going concern issue.

Topics Covered

  • Update on selected AICPA auditing standards
  • Factors impacting entities with going concern issues including those using a financial reporting framework that does not include an explicit requirement for management to make a specific evaluation of the entity's ability to continue as a going concern
  • GAAP for ASU 2013-07, Presentation of financial statements (topic 205): Liquidation Basis of Accounting and 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
  • Matters on reporting, disclosure, and measurements

Learning Objectives

  • Identify updates on ASB's No.132
  • Identify the standard and how the application will impact practically every professional accountant who deals with going concern issues
  • Differentiate effective dates
  • Identify reporting requirements, form, and content of financial statements
  • Recognize disclosure requirements for going concern entities and other related matters
  • Differentiate SASs superseded by the new standards
  • Recognize valid statements with respects to SAS No 132
  • Describe accounting standard updates which address management responsibilities with respect to Going Concern
  • Recognize the number one audit deficiency included within the Top 10 list based on the article from the Journal of Accountancy
  • Identify the steps an auditor should take in order to increase the likelihood of detecting related-party transactions
  • Recognize the selected AICPA Auditing & FASB Standards
  • Differentiate Going Concern audit deficiencies

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
Participants should have a general knowledge of generally accepted accounting principles.

Advance Preparation
None

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