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NFRA Issues SA 570 Guidance on Going Concern Assessments
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NFRA Issues SA 570 Guidance on Going Concern Assessments

October 5, 2026

NFRA released guidance on auditors’ evaluation of going concern under SA 570, covering reporting, CARO 2020, and 35 audit committee questions.

NFRA Releases Going Concern Assessment Guidelines

The National Financial Reporting Authority (NFRA) has issued detailed guidance for auditors on assessing going concern under SA 570. The document outlines procedures for risk evaluation, management disclosures, and auditor reporting outcomes.

The guidance elaborates on key indicators such as negative cash flows, loan defaults, and legal actions. It mandates specific disclosures under CARO 2020, including defaults in repayments, cost of asset acquisition, and fraud reporting. Additionally, it proposes 35 standard questions for audit committees to evaluate going concern assumptions.

For audit and corporate practitioners, this guidance enhances audit consistency and strengthens governance. Early identification of going concern risks allows timely corrective measures. Auditors must now align processes with NFRA’s framework to avoid scrutiny.

Citations

  • SA 570, CARO 2020
Practice Areas:corporateaudit

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