As mentioned, ISA 570 contains the rules for the work to be performed by the external auditor when reviewing the financial statements of an entity to render an opinion on these financial statements based on International Standards on Auditing.
Assesment of the Venezuelan Circumstances
To assess the situation in Venezuela, managers and/or shareholders must take into consideration the concepts of IAS 1 and the disclosures required in this regard (or Section 3 of IFRS for SMEs if it is a medium or small entity).
Consequences of the Analysis
The accumulation of some of the matters discussed in the previous section doesn’t necessarily determine that an institution faces difficulties to ensure compliance with the Going Concern Assumption. New business decisions; changes in government policies and laws; improved economic outlook; change of line of business; change of management approach; etc., can be used as a mean to justify that the entity must, yet, be considered as a going concern, even though financial reports could show severe financial problems. In such cases, the disclosures required by IFRS would help users of financial statements of these entities to understand the situation, which imply a good preparation of management to properly develop such disclosures.
We can only see the forest when we get out of the trees!