U.K. Accounting Regulator Strengthens Going Concern Standard

The U.K. accounting regulator strengthened its going concern standard following criticism that auditors failed to report concerns about companies’ likely collapse.

• The Financial Reporting Council said the revised standard published Sept. 30, ISA UK 570 Going Concern, will put U.K. auditors under significantly stronger requirements than current global requirements.
• Auditors will have to do more to “robustly challenge management’s assessment of going concern,” test supporting evidence and evaluate management bias, the FRC said in a statement. There is also a new reporting requirement for auditors of public interest, listed and large private companies to conclude whether management’s assessment is ...