NFRA Guidance on Going Concern Under SA 570 (Revised): 35 Questions Audit Committees Can Ask Auditors

The National Financial Reporting Authority (NFRA) has released the sixth publication in its Auditor–Audit Committee Interactions Series, focused on the going concern assessment under SA 570 (Revised). It explains who is responsible for what, how each going concern situation should be reported in the audit report, how CARO 2020 reporting differs, and sets out 35 questions an audit committee may ask the statutory auditor.

Who is responsible for the going concern assessment

• Management assesses the entity's ability to continue as a going concern.
• The Board of Directors and the Audit Committee oversee that assessment.
• The statutory auditor, under SA 570 (Revised), evaluates management's assessment, obtains sufficient appropriate audit evidence and concludes whether a material uncertainty exists.
• NFRA notes that it does not set standards or codes for corporate governance, Boards or Audit Committees; the questions are a guide.

Six going concern situations and their reporting outcomes

The publication walks through six situations, ranging from an unmodified opinion with no going concern reporting, to a separate "Material Uncertainty Related to Going Concern" section, qualified or adverse opinions, and an Emphasis of Matter where an acceptable alternative basis of accounting is adopted. It separately explains the auditor's reporting under Clause 3(xix) of CARO 2020 and why that conclusion can differ from the SA 570 conclusion.

What the 35 audit committee questions cover

• Risk indicators that may cast doubt on going concern.
• Management forecasts, cash-flow projections and sensitivity analysis.
• Future funding plans and third-party or promoter support.
• Breach of loan covenants.
• Group situations and regulated entities.
• Material uncertainties and alternative accounting bases.

NFRA's message to auditors

At NFRA's webinar on SA 570 (Revised) in August 2026, the NFRA Chairperson observed that audit files often contain management's assessment and the auditor's final conclusion without showing the work and evaluation that connect the two. A going concern conclusion cannot rest only on management projections, a support letter or a completed checklist.

What auditors and finance teams should do

• Document how management's forecasts and assumptions were tested, not just the conclusion.
• Obtain evidence of the ability, not only the intention, of promoters or group companies to provide support.
• Review covenant compliance and funding plans for at least twelve months from the reporting date.
• Use the 35 questions to prepare for audit committee meetings in the FY 2026-27 audit cycle.