CAS 570 revised: what auditors must do before 2027
You've got a December 2027 audit client. Slow cash flow, a maturing loan, a tight covenant. The kind of file where going concern is never just a checklist. Now add a revised standard you haven't worked with yet. That's the spot a lot of Canadian senior auditors are about to be in.
CAS 570 (Revised) changes how you handle going concern. The AASB put it in the Handbook in June 2025, and it kicks in for periods beginning on or after December 15, 2026. For a normal calendar-year client, that means December 31, 2027 year-ends are the first ones caught.
So you have time. But not as much as it sounds, because templates and training take a full cycle to bed in.
Here's what you'll learn: what actually changed, when it really applies, and a short plan to get your files and your staff ready this year.
What CAS 570 (Revised) actually is
CAS 570 is the going concern standard. It sets out what you, the auditor, have to do about management's view that the business can keep running for the next while.
Canada adopts international standards as CASs. The AASB published CAS 570 with no Canadian amendments into the CPA Canada Handbook in June 2025, and it aligns with ISA 570 (Revised 2024). So this is the global revision, dropped straight into our Handbook.
Why the change? Big corporate failures kept happening where the audit report said nothing was wrong right up to the collapse. The revision tightens your work and makes the report say more about it.
The core idea hasn't moved. You still assess whether the going concern basis is right and whether there's a material uncertainty. What changed is how much work you do and how clearly you report it.
When it really bites
The standard applies to audits of financial statements for periods beginning on or after December 15, 2026.
Read that again. It's the start of the period, not the year-end.
So for a calendar-year client running January 1 to December 31:
- A December 31, 2026 year-end covers a period that started January 1, 2026. That's before the cutoff. Not caught.
- A December 31, 2027 year-end covers a period that started January 1, 2027. That's after the cutoff. Caught.
Bottom line: for your everyday calendar-year clients, December 31, 2027 is the first year-end under the new rules. Not 2026. If your colleague tells you 2026 year-ends are the first ones in, they've mixed up the start date with the year-end, and you should correct them.
Off-calendar clients can land earlier. A client whose year begins December 15, 2026 and runs twelve months hits a December 14, 2027 year-end under the new standard. So check each client's period start, not just the year-end month.
Why “start now” still holds
You might be thinking, December 2027 is ages away. Why care in 2026?
Two reasons.
First, the work to get ready is real. New audit programs, new CaseWare templates, and trained staff don't appear overnight. You want them done and tested before the file lands.
Second, one change pulls going concern earlier in your timeline. Under the revised standard, the auditor's evaluation period begins from the date of approval of the financial statements rather than the date of the financial statements. The minimum assessment period is still at least twelve months. That sounds small, but it stretches the window your evidence has to cover. You plan for that at the start, not at sign-off.
The five changes that hit your files
Here's what actually changes when you're on a file.
1. A longer assessment window
As above, your evaluation now runs from the date the statements are approved, not the date of the statements. The twelve-month minimum still applies, but it counts from a later point. So if a client's statements get approved three months after year-end, your going concern thinking has to reach further into the future. Plan your timeline with this in mind.
2. You evaluate management's call every time
Old habit: if nothing looked shaky, you noted it and moved on. That's gone.
You now have to evaluate management's assessment of going concern whether or not you've spotted events or conditions that cast doubt. And you have to consider management bias and look at the method, the significant assumptions, and the data behind their assessment.
In plain terms: no more skipping the work just because the client “looks fine.” Even a healthy client needs a documented look at how management reached its conclusion.
3. A harder look at management's plans
When there's doubt, management usually has a plan. Refinance the loan. Sell a building. Cut costs. The bar for those plans is higher now.
You have to evaluate whether management's plans are feasible, whether management has the intent and the ability to carry them out, and whether the likely outcome will actually mitigate the problem.
So a vague “we'll refinance” doesn't cut it. You want evidence. A term sheet. A board resolution. A history of doing what they say. Test the plan, don't just note it.
4. A going concern section in every report
This one changes the deliverable, so partners will notice.
The revised standard adds a separate going concern section to the auditor's report. When there's no material uncertainty, it sits under the heading “Going Concern.” When there is one, you use the “Material Uncertainty Related to Going Concern” heading as before.
So even clean files now carry a going concern section. Update your report templates so this doesn't get missed at the finish line.
5. More talk with those charged with governance
The standard pushes clearer communication in the report and stronger communications with those charged with governance and external parties.
Practically, that means going concern shows up in your governance letters and board conversations more often, and in more detail. Build a spot for it in your standard communications so it's consistent across files.
What this means for your CaseWare templates
Templates are where this gets real for most firms. Here's the short list.
- Going concern risk assessment: Add a working paper that documents your evaluation of management's assessment even when nothing looks off. Capture method, assumptions, data, and bias.
- Management's plans: Add fields for feasibility, intent, ability, and the evidence you used to test each plan.
- Assessment period: Note the approval date and confirm your twelve-month window runs from there.
- Report template (CaseView): Insert the new “Going Concern” section so it's there by default, with the “Material Uncertainty” version ready to swap in.
- Governance letter template: Add a going concern line so it's covered every time.
If your firm uses a national or network template set, check when the updated version drops and don't free-hand it before then.
Mistakes to avoid
- Treating 2026 year-ends as in scope. They're not, for calendar clients. Don't apply the new report wording a year early by accident.
- Skipping the assessment on healthy clients. The “evaluate every time” rule means clean files still need documented work.
- Taking management's plans at face value. Feasible, intent, ability, evidence. Test all four.
- Leaving going concern to wrap-up. The window starts at approval date now. Pull it into planning.
- Forgetting the report section on clean files. It belongs in every report, not just the shaky ones.
The honest limits
A blog post gets you oriented. It doesn't replace the standard.
This is the practitioner view, not the full text of CAS 570. Real files have wrinkles, and judgment calls won't fit a checklist. For the binding wording, go to the Handbook and the FRAS Canada and CPA Ontario resources. When a file is genuinely close, talk to your engagement partner or your firm's technical group leader. That's the job. This piece just helps you walk in ready.
The bottom line
- CAS 570 (Revised) is in the Handbook now and applies to periods beginning on or after December 15, 2026, so December 2027 is the first year-end for calendar clients.
- Five real changes: a longer assessment window, evaluating management's call every time, a harder look at plans, a new report section, and more governance talk.
- The work to get ready (programs, CaseWare templates, staff training) takes a full cycle, so this year is the time to do it.
- Build going concern into planning, not wrap-up.
None of this is dramatic. But it's the kind of change that's easy to miss until it's on the file in front of you. Handle the prep now and busy season stays calm.
We break down standards like this one in plain English every week. Come back next week for the next one.