How does subsequent-event review interact with going concern?

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Answer

Events after the reporting date can confirm or resolve going concern doubt—e.g., a customer's collapse, a secured refinancing, or covenant renegotiation. The auditor reviews subsequent events up to the report date (and remains alert after) to update the going concern conclusion and ensure disclosures reflect the latest information about the entity's viability.

Real-world example A refinancing signed after year-end but before the report resolves the earlier going concern doubt, updating the conclusion.

Common follow-ups: How can subsequent events resolve doubt? | Until when does the auditor consider them?

Audit Evidence & Procedures Audit Report & Opinions Going Concern

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