Aspects Related to the Insolvency Audit
Author:
Lisa WEAVER, ACCA
JEL:
M 42, G 33
DOI:
Keywords:
insolvency audit, liquidation, economic recession
Abstract:
Aspects related to the insolvency audit are analyzed in this article. All professional auditors must know all details related to the insolvency audit as they have to comply with the European Directive No. 43/2006 on statutory audit. The Professional Supervisory Committee of the Financial Reporting Council recommends introducing specific insolvency audit objectives both in the preparation of future professionals and in the continuing professional development programs of the professional auditors.\r\n\r\nThis article highlights some of the issued that auditors may have to deal with in respect of insolvency. Of course, it is important to study this topic in its entirety using an up-to-date study text to gain full knowledge and understanding of this new syllabus area.\r\n\r\nAuditors have a part to play in advising directors of companies that are in financial distress or, indeed, are insolvent. The professional auditors must be prepared to identify in a situation like this all issues relating to insolvency and to offer proper explanations and recommendations.\r\n\t\t