FRC warns auditors over credit crunch

Kashflow logo
Share this content

Ongoing liquidity problems mean entities with exposure to the financial markets face an increased risk of material misstatements, according to the FRC. The council has expanded its area of concern outside the financial sector to include any business that could be affected by current market conditions.

In a January bulletin, it flagged the going concern and the valuation of investments as specific risk areas. As expiring financial arrangements prove difficult or impossible to replace, the going concern assumption faces serious consequences. Similarly, as many financial investments will be experiencing severely curtailed trading (or none at all), balance sheets will also come under strain.

Past experience of obtaining necessary financing cannot be relied on alone to provide sufficient evidence...

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

About AccountingWEB


Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.