International Standards on Auditing ISA 570 or Standards on Auditing SA 570 deals with the auditor’s responsibilities in an audit of financial statements relating to going concern and the implications for the auditor’s report. The financial statements are prepared on the assumption that the entity is a going concern and will continue its operations during the foreseeable future. Notably, an entity is assumed to be a going concern in the absence of any contrary, significant status quo. Various aspects affect an entity’s ability to continue as a going concern and, at present, the impact of COVID-19 is going to be a significant aspect. Both the entity’s management personnel and the auditors need to give high priority to various areas and assess the impact of COVID-19 on going concern assumption.

From an organizational standpoint, the importance of digital transformation cannot be undermined. Resisting digital adoption is akin to signing up for irrelevance in double quick time. Analysts believe that at least 50% of the Fortune 500 companies won’t be around in the next ten years as mortality rate is at an all-time high. Arguably, most new companies would consider themselves lucky if they cross the 20-year mark. Having said that, the pace at which various industries continue to adopt digital, is hardly uniform and leaders must not allow complacency to set in.