ACCA AA Syllabus E. Review And Reporting - The need for going concern reviews - Notes ^{2 / 4}

The auditor must be satisfied that the going concern assumption is reasonable because it will affect their opinion as to whether the financial statements present a ‘true and fair view’.

If the auditor gave the opinion that the financial statements represented a true and fair view without considering the going concern assumption and the business went bust shortly after, the auditor may be held to account.