The Auditor and the Going Concern Principle During the Economic Crisis Period

Author:University Prof. Alain BURLAUD

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Keywords:ongoing concern principle, accounting law, the preventive treatment of deficiencies, alert procedure

Abstract:
The theme of the article emphasizes the premise that, in the current economic crisis, the hypothesis of the going concern is one of the fundamental accounting principles. During this period, many companies deal with forecast difficulties in stating with a reasonable risk level the fact that they can continue their activity in normal circumstances. In this context, the going concern principle is analyzed according to the accounting law and the auditor’s obligations and risks are analyzed through professional standards.\r\nFurthermore the preventive treatment of deficiencies is dealt with, emphasizing the alert procedures that can be undertaken by the financial auditor, contingencies that can occur during the engagement with regard to the obligations and the responsibility of the auditor. The alert is treated by comparison: with the requirements of the consolidations of the permanence of the engagement of the auditor; with the independence of the auditor; with the principle of the auditor’s non-interference in the gestion; with the responsibility of the auditor and, finally, with the disclosure of fraud by the auditor.\r\nTo conclude, the auditor believes that the experience of the practicians and of the management prove that the alert procedure undertaken by the auditor is meant to determine the avoidance of the deficiencies of that entity, which provides the auditor with a remarkable position in the economic domain.\r\n

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