The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), together with the Colombo Stock Exchange (CSE), have held a roundtable discussion on the revised Sri Lanka Auditing Standard on Going Concern (SLAuS 570).
The meeting, themed ‘Raising the Bar under Revised SLAuS 570 on Going Concern’, included chief financial officers, finance directors, chairpersons of audit committees, and audit practitioners involved in the audits of listed entities.
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In a statement, CA Sri Lanka said the discussion underscored the shared responsibilities of management, boards and auditors in assessing going concern under the new standard.
SLAuS 570 (Revised) tightens the audit framework for going concern, introducing more demanding requirements on risk assessment, documentation and auditor reporting.
It is aligned with the updated International Standards on Auditing and responds to the need for closer scrutiny and transparency in volatile economic conditions.
The session aimed to raise awareness of the revisions and explain key changes, with a focus on listed entities and the increased expectations on auditors, management and those charged with governance.
Topics discussed included challenges in preparing cash flow forecasts and business projections under heightened review, the use of early warning indicators by boards and audit committees, and expanded documentation and evidence needs.
The discussion also pointed to scope for stronger collaboration between preparers and auditors.
At the meeting, CA Sri Lanka president Tishan Subasinghe described the revised standard as a “timely development” in strengthening audit quality and reinforcing stakeholder confidence in Sri Lanka’s capital markets.
For listed companies, the implications are substantial, with audit committees expected to take a more active role in overseeing going concern assessments.
Meanwhile, auditors are required to meet higher thresholds related to evidence, documentation and reporting, CA Sri Lanka said.
