Recently FMA reviewed a sample of 56 issuers to assess their going concern disclosures in financial statements and annual reports, and the auditor’s performance regarding the application of the audit standards relating to the going concern.

FMA concluded that the financial reporting of going concern in issuer financial statements did not give enough factual information to enable investors to understand the particular risks and uncertainties that impact on the going concern assumption.

Of particular concern to FMA is that many of the audits were not compliant with the audit standard that relates to the certification of going concern issues in financial statements.

To read FMA’s full report click here.