Tatiana Bezus, Audit Director at MEF-Audit PKF spoke at All-Russian Congress of Accountants held in late November in Moscow. She addressed the significant ambiguity of the going concern principle, an issue of increasing concern. The matter has been followed with keen interest by auditors, controlling authorities and regulators.
Due to the world economic recession, now even major companies are facing challenges contributing to their poor financial situation where it is no longer possible to cover the liabilities or even to continue operations without interruption.
The international standard on auditing 570, Going Concern, deals with the auditor's responsibilities in the audit of financial statements relating to management's use of the going concern assumption in the preparation of the financial statements.
In her speech, Mrs. Bezus elaborated on the events and conditions that could raise doubts about the capability of the company to further operate without interruption and gave practical examples on the matter.