Table of Contents
Going Concern Audit Issues1
| Introduction | 1 |
| Going Concern Issues for the Reporting Entity | 1 |
| Disclosures When Substantial Doubt is Alleviated | 3 |
| Disclosures When Substantial Doubt is Not Alleviated | 3 |
| Governmental Going Concern Issues | 4 |
| The Liquidation Basis of Accounting | 5 |
| Auditor Responsibilities Relating to the Going Concern Issue | 6 |
| Risk Assessment Procedures | 7 |
| Written Representations | 9 |
| Adequacy of Disclosures | 9 |
| Auditor's Report Issues | 9 |
| Comparative Financial Statements | 10 |
| Interim Financial Statements | 10 |
| Re-issued Financial Statements | 10 |
| Communications Issues | 10 |
| Inherent Limitations | 11 |
| Documentation | 11 |
| Auditor Best Practices | 11 |
| Summary | 13 |
| Review Questions | 14 |
Answers to Review Questions15
Glossary16
Index17
Course Details
Author: Steven M. Bragg, CPA
Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.
Publication/Revision Date: 6/14/2026
Course Exam Questions (online): 5 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: Downloadable PDF, Printed/Mailed
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors I.D.: 107615
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the criteria for a going concern evaluation.
- Identify what constitutes an adverse condition or event.
- Specify the unique characteristics of the liquidation basis of accounting.
- Recognize audit procedures associated with the going concern topic.
- Identify the going concern documentation requirements for the auditor.
