ICAEW.com works better with JavaScript enabled.

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.
Contents
Back to top

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.
See more

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.
Superforecasting: How to improve your forecasting skills
  • Report
  • 17 Feb 2021
Forecasting is an essential skill for finance professionals and managers. Business decisions of all kinds depend on effective approaches to looking ahead. This guide outlines the core principles of “Superforecasting” which will help you develop your forecasting skills.
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.
See more

Preparing financial statements

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 The concepts and pervasive principles
  • eBook chapter
  • 01 May 2025
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 Sample UK large company financial statements
  • eBook chapter
  • 01 Feb 2025
Example financial statements based on the requirements of the Companies Act 2006 and FRS 102.
Exclusive Events after the End of the Reporting Period
  • eBook chapter
  • 01 Jan 2025
A chapter providing practical guidance on events after the end of the reporting period for financial statements under UK GAAP.
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.
Exclusive Going concern considerations – a guide for FRS 105 preparers
  • Helpsheets and support
  • 06 Sep 2022
Factors for preparers of micro-entity accounts to consider when doing a going concern assessment and the practical implications for financial reporting.
See more

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.
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.
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.
What does going concern in the public sector really mean?
  • Article
  • 02 Nov 2022
Many consider the going concern assumption in the public sector “meaningless”, so could resilience statements provide a better way of assessing whether public bodies are financially viable?
Auditing going concern for public sector entities
  • Article
  • 15 Sep 2020
Should the current going concern audit requirements be relaxed for entities unlikely to disappear? A presumption some public sector bodies are a going concern could free up resources to audit areas that add more value.
See more

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.
Companies, directors and company law
  • Helpsheets and support
  • 16 Oct 2018
Further information on companies, directors and company law.
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.
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.
See more