PDF · SA 570 ..going concern
SA 570 Going Concern Notes for CA Inter Auditing and Ethics
- Shared by
- Suhana P.
- Course
- CA Inter
- Subject
- Auditing and Ethics
- Added
- 26 Oct 2026
Continue reading in the Studycaller app
The full PDF — free to read, save and share in the app.
These handwritten notes cover SA 570 on going concern, the standard that deals with the management's assessment of an entity's ability to continue operations and the auditor's responsibility in that area. The first pages set out the division of responsibility between management and the auditor, the auditor's flow of work (risk assessment, additional audit procedures, conclusion and reporting), and the meaning of the going concern basis of accounting. They suit CA Inter students preparing the Auditing and Ethics paper who want a short revision summary before exams.
What the notes cover
The notes start by separating management's duty to assess going concern from the auditor's duty to check whether the going concern basis is appropriate and whether any material uncertainty exists. A flow diagram then walks through the auditor's steps: identifying events or conditions that may cast doubt, carrying out additional audit procedures, concluding on the going concern basis and the existence of material uncertainty, and reporting. The basics section explains that an entity is normally a going concern, meaning it continues operations for the foreseeable future, and that general purpose financial statements are prepared on this basis. The notes also point out that if an entity is not a going concern, the financial statements are prepared on a liquidation basis.
How to use these notes for revision
Because the notes are brief, they work well as a last-read before the exam. Use the flow diagram to answer questions that ask for the steps the auditor follows, and use the basics section to define the going concern basis in your own words. Practise linking each step to the matching audit reporting outcome, since many questions test whether a material uncertainty leads to disclosure in the report. Pair the notes with the standard text for the exact wording of indicators and procedures.
Who should read these notes
These notes are meant for CA Inter students studying Auditing and Ethics who are covering SA 570 for the first time or revising it close to the exam. They are useful for students who find the management versus auditor responsibility split confusing. The page shows the first three pages of a longer set of notes, so students wanting the full treatment of indicators, reporting and examples can open the complete note in the Studycaller app.
Key topics in these notes
- Management's responsibility to assess going concern
- Auditor's responsibility under SA 570
- Risk assessment procedures for going concern
- Additional audit procedures and mitigating factors
- Conclusion on going concern and material uncertainty
- Reporting on going concern
- Going concern basis of accounting
- Liquidation basis of preparing financial statements
Related notes
Frequently asked questions
What is SA 570 going concern?
SA 570 is the auditing standard that deals with the auditor's responsibilities on going concern in an audit of financial statements. It covers whether management's use of the going concern basis is appropriate and whether material uncertainties exist.
What is the going concern basis of accounting?
It is the assumption that an entity will continue its operations for the foreseeable future and has neither the intention nor the necessity to liquidate or materially curtail its operations. Financial statements are prepared on this basis when it is appropriate.
What steps does the auditor follow under SA 570?
The notes show a flow of risk assessment to identify events or conditions, additional audit procedures including checking for mitigating factors, a conclusion on the going concern basis and material uncertainty, and then reporting.
Which CA Inter paper covers SA 570?
These notes are for the Auditing and Ethics paper at CA Inter level.
How can I get the full PDF?
Open it free in the Studycaller app.