Audit committees to confront going-concern issues?

As the economy worsens, more companies may be faced with going-concern issues, according to the PCAOB. This will task the auditors and audit committees, who are on the front lines of determining whether there is substantial doubt about a company's ability to continue. Any skepticism needs to be noted in financial statements and in auditors' reports, notes PCAOB chairman Mark Olson in Financial Week.

The economy will likely throw the spotlight on such issues as collectability of receivables, potential inventory obsolescence and the impairment of other assets, such as deferred taxes and goodwill--all of which should have Sarbanes-Oxley controls in place. So in theory, people should know exactly what they are dealing with and should have the data to make decisions.

For more:
- here's the Financial Week article

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