As members are aware, "going concern" is one of the fundamental assumptions underlying the preparation of the financial statements. The objective of this AAS is to establish standards on the auditor’s responsibilities in the audit of financial statements regarding the appropriateness of the going concern assumption as the basis for the preparation of the financial statements. The AAS deals with the relevant areas in this regard such as indications - financial, operating and other - of appropriateness or otherwise of the going concern assumption, audit evidence, illustrative audit conclusions and reporting in case going concern assumption considered appropriate/ going concern question not resolved/ going concern assumption considered inappropriate.

The AAS is effective for all audits relating to accounting periods beginning on or after April 1, 1999.

Issued in October, 1998.
Published in the Handbook of Auditing Pronouncements, Vol. I, (Edn. 2003).
Also available as a separate publication of the Institute (Price: Rs. 15/-).
ISBN: 81-87072-25-3.