Going Concern after the Global Downturn

One of the fundamental accounting concepts which underlie the annual financial statements of companies all around the world is “the going concern principle”. This paper presents “going concern” as a major risk assigned to the business environment starting with 2008 during the economic downturn from the auditor’s perspective. Positive features can be viewed at the horizon after the crisis including the major improvements in auditor’s approach when dealing with “going concern assumption” in connection with going concern risk. These aspects are going to be detailed in this study including the additional assurance and tests of the auditors in dealing with management assertions in respect of going concern versus professional judgment and skepticism.