Auditors Beefed Up Going-Concern Probes: U.K. Watchdog

July 2, 2020, 7:26 AM

The largest U.K. audit firms have beefed up their measures to better evaluate if companies risk running into financial difficulty since the onset of the coronavirus pandemic, the U.K. accounting watchdog said.

These steps include broadening the scope of required consultations and central guidance for audit teams, and increasing regular communications with them, the Financial Reporting Council said Thursday in a statement.

“The pervasive and uncertain impact of Covid-19 has made assessing whether companies have a material uncertainty to going concern much more difficult for many boards and their auditors,” David Rule, the FRC’s executive director of supervision, said in ...

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