Developed to facilitate the EU REPARIS Audit Training of Trainers program, the objective of the group exercise is to enhance the analytical and intellectual skills of participating trainers while engaging in a practical case study involving going concern judgements. Gathering appropriate evidence and evaluating the appropriateness of the going concern assumption, as well as making judgements about whether a going concern issue is present, are affected by the size of the entity. Auditors in small- and medium-sized practices (SMPs) face specific challenges when auditing going concern in their small- and medium-sized enterprise (SME) clients. It is therefore critical for SMP practitioners to develop a wide range of analytical and intellectual skills including abilities to apply sound professional judgement to reach well-reasoned conclusions based on facts.
Group Exercise: Going Concern Judgements