The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), in collaboration with the Colombo Stock Exchange (CSE), recently hosted a high-level, invite-only roundtable breakfast meeting on the revised Sri Lanka Auditing Standard on Going Concern (SLAuS 570).
Held under the theme “Raising the Bar under Revised SLAuS 570 on Going Concern”, the session brought together Chief Financial Officers, Finance Directors, Chairpersons of Audit Committees, and audit practitioners involved in the audits of listed entities. The roundtable discussion, held at CA Sri Lanka, highlighted the significance of the revised standard and the shared responsibility of preparers, governance bodies, and auditors in strengthening going concern assessments.
Attendees included CA Sri Lanka President Mr. Tishan Subasinghe, Members of the Council, Chairman of the Auditing Standards Committee Mr. Suren Rajakarier, Alternate Chairman Mr. Malinda Boyagoda, and CSE CEO Mr. Rajeeva Bandaranaike. The objective of the session was to enhance awareness of the revised standard and to outline the key changes introduced, with particular emphasis on their implications for listed entities and the heightened expectations placed on auditors, management, and boards.
Delivering the opening remarks, Mr. Tishan Subasinghe described the revised standard as a timely development in strengthening audit quality and reinforcing stakeholder confidence in Sri Lanka’s capital markets. He emphasised the profession’s responsibility in leading this transition with diligence and accountability.
In his speech, Mr. Rajeeva Bandaranaike reaffirmed the CSE’s commitment to promoting transparent and credible financial reporting among listed entities. He noted that robust going concern disclosures are essential to maintaining market integrity and investor trust.
Sharing insights drawn from recent economic and industry challenges, with particular
reference to Sri Lanka-specific conditions, Mr. Suren Rajakarier reflected on post-crisis developments, including economic volatility, debt restructuring, and liquidity pressures. He highlighted key lessons for auditors and preparers in strengthening going concern assessments.
Mr. Malinda Boyagoda outlined the key revisions under ISA 570 (Revised) and their implications for finance teams. He also discussed the interlinkages with other revised International Standards on Auditing, including ISA 700, 701, 705, and 706, and the increased expectations for robust, evidence-based judgements in going concern evaluations.
Ms. Anusha Mohotti, Head of Audit Quality Monitoring at CA Sri Lanka, addressed the governance and regulatory implications of the revised standard from an auditor’s perspective. She emphasised the importance of effective communication between auditors
and Audit Committees, particularly in relation to significant risks, uncertainties, and audit quality expectations.
Ms. Nilupa Perera, Chief Regulatory Officer of the Colombo Stock Exchange, provided the regulatory perspective, focusing on the role of Audit Committees and auditors in strengthening governance and enhancing stakeholder confidence. She also outlined the CSE’s approach to regulatory oversight in relation to going concern disclosures.
The session concluded with a moderated roundtable discussion facilitated by Mr. Rajakarier, which brought together panellists and participants in an open exchange on the practical implications of the revised standard. The panel included the speakers, along with Mr. Dasun Mendis, Chief Financial Officer of E B Creasy & Co. PLC.
The discussion covered a range of themes, including the challenges faced by management in preparing cash flow forecasts and business projections under increased scrutiny, early warning indicators for boards and Audit Committees, documentation and audit evidence requirements, and opportunities for closer collaboration between preparers and auditors.
The CFO perspective shared by Mr. Mendis provided practical insights into the operational realities faced by listed companies, reinforcing the importance of proactive governance and clear communication across the financial reporting ecosystem.
SLAuS 570 (Revised) represents a significant enhancement to the auditing framework governing going concern assessments. The revised standard introduces more rigorous requirements relating to risk assessment procedures, documentation, and auditor reporting, and is aligned with the broader suite of updated International Standards on Auditing. It reflects the global profession’s recognition that going concern judgements, particularly in volatile economic environments, require enhanced scrutiny, greater transparency, and strengthened collaboration among auditors, management, and those charged with governance.
For Sri Lanka’s listed sector, the implications are significant, with Audit Committees expected to take a more active role in overseeing management’s going concern assessments, while auditors will be required to meet enhanced expectations in terms of evidence, documentation, and reporting.
