Frequently asked questions on going concern

The IAASB have gone much further than just MURGC, in their quest for the ludicrous. They set up a task force and asked them to publish answers to the most frequently asked questions on going concern.

Now would you believe me if I told you this is the first, most frequently asked question on going concern:

‘What is the purpose of MURGC and KAM sections and EOM paragraphs in the auditor’s report?’

Now this is not a joke. I am not trying to be funny. We are in the real world of audit and assurance. I couldn’t believe my eyes when I read this. But the publication does not stop at Question 1, the ludicrous and the frequent continue.

In question 4, the IAASB state:

‘What is the interrelationship between MURGC, KAM and EOM?’

It sounds to me like a trick question in an accounting exam:

“You have three hours in not more than 3000 words. Please write on only one side of the paper. Do not forget to explain what MURGC, KAM and EOM mean before answering the question. You may not consult ISA 700, ISA 701, ISA 706 or ISA 570 during the exam.”

These words in inverted commas are of course mine!

With just these two questions, I ask myself, have the IAASB got the title of their publication right?

‘Frequently asked questions  August 2022.’ [1]

Is ‘frequently’ the correct word here? Infrequently or rarely might be more relevant, but then who would ever read a publication with the title:

‘Rarely asked questions’!

For those of you who still do not know what MURGC is, it is of course: Material Uncertainty Relating to Going Concern.

[1] Frequently asked questions August 2022, Reporting going concern matters in the Auditor’s Report, published by the Going Concern Task Force of the International Auditing and Assurance Standards Board (IAASB) (https://www.iaasb.org/publications/reporting-going-concern-matters-auditors-report)