AUD Going Concern · Updated November 2026
Going Concern: What Does 'Substantial Doubt' Actually Mean?
The core question is whether obligations can be met over the required evaluation period.
Management assessment
Management evaluates conditions and events that may raise substantial doubt.
Auditor evaluation
The auditor evaluates management's assessment, evidence, and plans.
Disclosure
Adequate disclosure is critical when substantial doubt exists or is alleviated by plans.
Exam strategy
Separate doubt, plans, and disclosure.
The takeaway
Going-concern reporting depends on conditions, management plans, and disclosure.
Related Summit resources
FAQ
Is going concern only about losses?
No.
Can management plans affect the conclusion?
Yes.
Can inadequate disclosure affect the opinion?
Yes.