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Evaluating going concern

Going concern is the fundamental assumption that an entity will continue to operate in the foreseeable future. Understanding whether an entity is a going concern is a key concern for management, investors and auditors. Stakeholders want to understand how viable and resilient an entity is to current and future stresses.
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Understanding going concern

What is reverse stress testing?
  • Article
  • 16 Apr 2025
ICAEW’s Audit and Assurance Faculty offers guidance on what you need to know about reverse stress testing, what it aims to do and the key terminology.
Understanding audit reports
  • Helpsheets and support
  • 29 Sep 2023
The FAQs below, created by ICAEW’s Audit and Assurance Faculty, are designed to help investors and other users of audit reports to better understand the different types of audit report wordings used by auditors, and their significance. They also highlight how economic uncertainty resulting from wider external factors can impact audit reports.
Why all businesses should reverse stress test
  • Article
  • 18 Jun 2020
Entities of all sizes should consider using reverse stress testing to enhance their going concern assessments and related disclosures.
How to do reverse stress testing
  • Article
  • 21 May 2020
Reverse stress testing (RST) aims to provide useful information about vulnerabilities in a firm’s business model and strategy. ICAEW outlines a step-by-step guide on how to complete an RST.
How entities and auditors use RST
  • Article
  • 21 May 2020
Reverse stress testing (RST) can help organisations when designing measures to prevent and mitigate the risk of business failure, and be useful for auditors.
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Managing and forecasting cash

Navigating tariffs: four considerations for auditors
  • Article
  • 29 Apr 2025
The introduction of enhanced tariffs by the current US administration will inevitably place a strain on many UK-based and global businesses.
Exclusive Building an Excel model to test if you are a going concern
  • Article
  • 25 May 2023
At times of uncertainly and high inflation the assessment of an organisation’s going concern is going to be high on the agenda for the Board and in particular the accounts sign off meeting with the auditor.
Cashflow modelling: good spreadsheet practice
  • Article
  • 14 Apr 2020
Cash flow forecasts are often prepared in Excel – but spreadsheets are notoriously error-prone. The ICAEW Tech Faculty shares insight on how to reduce errors in spreadsheets.
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Preparing financial statements

Exclusive Sample UK large company financial statements
  • eBook chapter
  • 31 Jul 2026
Sample large-sized company financial statements based on the requirements of the Companies Act 2006 and FRS 102.
Exclusive The concepts and pervasive principles
  • eBook chapter
  • 05 Jun 2026
Chapter providing guidance for unlisted companies on the qualitative characteristics of financial statements and how items are classified among assets, liabilities, income, expenses and equity, as dealt with in FRS 102, Section 2.
Exclusive Events after the end of the reporting period
  • eBook chapter
  • 05 Jun 2026
A chapter providing practical guidance on events after the end of the reporting period for financial statements under UK GAAP.
Exclusive Events after the end of the reporting period
  • eBook chapter
  • 30 Mar 2026
A chapter on events after the reporting period within the small companies' financial reporting framework and the micro-entities legislation, written by a specialist on small company reporting issues.
Exclusive Events after the end of the reporting period
  • eBook chapter
  • 11 Sep 2025
Chapter on events after the end of the reporting period in a guide to all aspects of UK auditing standards and UK GAAP accounting standards.
Exclusive Illustrative auditor’s report (small entity reporting under UK and Ireland GAAP with material going concern uncertainties)
  • eBook chapter
  • 11 Sep 2025
A pro forma auditor’s report for a small entity reporting under UK and Ireland GAAP, with material going concern uncertainties. It demonstrates the use of a ‘Material Uncertainty Related to Going Concern’ paragraph, in line with the requirements of ISA (UK) 570.
Striking off a company - accounting, auditing and other considerations
  • Helpsheets and support
  • 08 Dec 2023
Technical helpsheet issued to help ICAEW members consider the options and impacts of striking off a company in terms of accounting, audit and other considerations.
Exclusive Going concern considerations - a guide for IFRS reporters
  • Helpsheets and support
  • 06 Sep 2022
This guide summarises management’s responsibilities for assessing going concern and the associated practical implications for financial reporting under IFRS.
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Auditing going concern

How to approach going concern reviews as a trustee
  • Article
  • 09 Apr 2026
At this time of year, many charity finance professionals and treasurers are entering their busiest season. With the financial year-end and subsequent audit approaching for many charities, the annual going concern review is a governance priority.
Exclusive Completing the audit and reporting
  • eBook chapter
  • 11 Sep 2025
A chapter on the completion phase of an audit. Covers subsequent events, going concern, written representations, audit finalisation and review, evaluation of uncorrected misstatements, and reporting.
Exclusive Events after the end of the reporting period
  • eBook chapter
  • 11 Sep 2025
Chapter on events after the end of the reporting period in a guide to all aspects of UK auditing standards and UK GAAP accounting standards.
Exclusive Illustrative auditor’s report (small entity reporting under UK and Ireland GAAP with material going concern uncertainties)
  • eBook chapter
  • 11 Sep 2025
A pro forma auditor’s report for a small entity reporting under UK and Ireland GAAP, with material going concern uncertainties. It demonstrates the use of a ‘Material Uncertainty Related to Going Concern’ paragraph, in line with the requirements of ISA (UK) 570.
Navigating tariffs: four considerations for auditors
  • Article
  • 29 Apr 2025
The introduction of enhanced tariffs by the current US administration will inevitably place a strain on many UK-based and global businesses.
What is reverse stress testing?
  • Article
  • 16 Apr 2025
ICAEW’s Audit and Assurance Faculty offers guidance on what you need to know about reverse stress testing, what it aims to do and the key terminology.
Exclusive The unmodified auditor’s opinion
  • eBook chapter
  • 25 Jul 2024
A chapter providing guidance on the content and wording of the auditor’s report under ISAs (UK), in cases where the auditor expresses an unmodified opinion. Covers topics including the Emphasis of Matter and Other Matter paragraphs, other information, material uncertainties related to going concern, Key Audit Matters and limitations on auditor liability.
Exclusive The unmodified auditor’s opinion
  • eBook chapter
  • 01 Jun 2024
A chapter providing guidance on the content and wording of the auditor’s report under ISAs (UK), in cases where the auditor expresses an unmodified opinion. Covers topics including the Emphasis of Matter and Other Matter paragraphs, other information, material uncertainties related to going concern, Key Audit Matters and limitations on auditor liability.
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Director responsibilities

ICAEW introduction to the law on dividends
  • Article
  • 01 Jun 2020
The law on dividend payments by companies has become a subject of some public interest. ICAEW welcomes this and has published a short introduction to the law.
Why company directors should use social media
  • Thought leadership report
  • 11 May 2020
  • PDF (1,312kb)
Directors should start using social media to engage with all stakeholders. Social media attracts an enormous number of users, including company employees, suppliers, and existing and new customers. In this ICAEW Connect and Reflect report, we describe the benefits of social media for directors.
Directors' responsibilities for transactions with shareholders
  • Helpsheets and support
  • 16 Oct 2018
Directors are responsible for ensuring their company complies with requirements applicable to certain transactions, including raising money from shareholders.
Directors' responsibilities if a company is in financial difficulty and dealing with investigations
  • Helpsheets and support
  • 16 Oct 2018
If a company is in financial difficulty, directors have additional duties to their usual responsibilities.
Consequences of breach of directors' responsibilities
  • Helpsheets and support
  • 16 Oct 2018
Directors are subject to a variety of sanctions for breach of their duties.
Directors' responsibilities for the activity of a company generally
  • Helpsheets and support
  • 16 Oct 2018
The directors are ultimately responsible for the management of the company.
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