Currently the disclosure requirements in auditing standards are more specific than in accounting standards when the use of the going concern basis of accounting is appropriate but a material uncertainty exists. Therefore, we support aligning the disclosure requirements in the accounting standards with those in the auditing standards in this regard.
Financial report preparers are not required to comply with the auditing standards, therefore auditing standards should not prescribe disclosure requirements. It can result in such disclosures being omitted from financial reports which in turn can create tension between management and auditors in practice. Against a backdrop of COVID-19, there are likely to be more significant judgements in determining whether the going concern basis of preparation is appropriate and more material uncertainties related to going concern, which amplifies the issue.