IDW PS 330

What is IDW PS 330?

IDW PS 330 is an auditing standard of the Institute of Public Auditors in Germany (IDW). It deals with the audit of a company's ability to continue as a going concern as part of the annual financial statements. The standard specifies how auditors should proceed in cases of uncertainty about the future business activities of a company.

Who is IDW PS 330 intended for?

• Auditors

• Audit teams in audit firms

• Company management that prepares the annual financial statements

• Supervisory bodies, e.g. supervisory boards or advisory boards

• Investors and other stakeholders who interpret the audit report

• Accounting and controlling specialists

How is IDW PS 330 structured?

IDW PS 330 is generally divided into several sections. The introduction clarifies the scope and objectives of the standard. A section on responsibilities defines the roles of auditors and company management. A further section provides detailed instructions for the audit procedures required to assess the ability to continue as a going concern. The assessment and conclusions are dealt with in a separate section. Finally, there are reporting requirements in the audit report and often also appendices for additional explanations or examples.

Overview of the structure:

• Introduction: Scope and objectives

• Responsibilities: Roles of the auditor and management

• Audit procedures: Instructions for audit steps

• Evaluation: Interpretation of the results

• Reporting: Communication in the audit report

• Appendices: Additional explanations or examples

Please note that the exact structure may vary.

Basic information on IDW PS 330:

• 1. purpose: The standardised assessment of a company's ability to continue as a going concern in the context of the annual financial statements by defining the responsibilities and procedures for auditors.

• 2. target group: Includes auditors, audit teams in audit firms, company management, supervisory bodies such as supervisory boards, as well as investors and other stakeholders who interpret the audit report.

• 3. voluntary: The application of IDW PS 330 is generally mandatory for auditors in Germany who perform annual audits.

• 4. Comprehensive: IDW PS 330 provides complete guidance on auditing a company's ability to continue as a going concern, but focuses specifically on this topic.

• 5. internationally recognised: IDW PS 330 is not automatically internationally recognised; the International Standards on Auditing (ISA) are generally used for international recognition.

• 6. transparency: IDW PS 330 aims to increase transparency in the assessment of a company's ability to continue as a going concern by providing clear guidelines and procedures for auditors. This should improve the quality of the audit report and provide stakeholders with more reliable information.

What is certification in accordance with IDW PS 330?

Certification in accordance with IDW PS 330:

• Not a separate certification

• Part of the annual audit

• Focus on the assessment of the ability to continue as a going concern

• Note in the audit report possible

• Integration into the overall audit process

How does certification in accordance with IDW PS 330 work?

There is no certification in the traditional sense in accordance with IDW PS 330. The standard is intended for the audit of annual financial statements and the assessment of a company's ability to continue as a going concern. It defines the procedures and responsibilities for auditors, but it is not a separate certification process. Instead, compliance with the standard is considered as part of the general annual audit and the associated audit report.

BFMT's experts have the necessary qualifications and expertise to certify you in accordance with IDW PS 330.