KPMG audit chief: no compromise on going concern warnings

KPMG will not compromise on 'going concern' warnings, says head of audit, despite auditors facing 'unprecedented' economic conditions

The new head of KPMG’s audit division, Oliver Tant, has said that the Big Four firm will not compromise its stance on ‘going concern’ warnings, despite auditors facing ‘unprecedented’ economic conditions.

In November, the Financial Reporting Council urged auditors to only refer to going concern ‘when appropriate’.

Going concerns refer to a ‘material uncertainty’ in the company’s accounts, highlighting a possibility that the company may not be trading in a year’s time.

However, Tant said KPMG would not water down standards on such warnings. ‘We are going to be just as rigorous on going concerns as before,’ he said, supporting the FRC guidance.

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