Paytm management-auditor tussle paves way for financial transparency

The Standard on Auditing (SA) 570 requires the auditor to obtain sufficient appropriate audit evidence that a company is a going concern and will continue its operations for the foreseeable future

The tussle between the auditors and the management of Paytm Payments Bank Limited (PPBL) over the “going concern” status of the company shows that corporate governance systems are maturing in India unlike before, when the former were pulled up for not flagging these issues, a senior official told Business Standard. The auditors have doubted whether PPBL can continue as a “going concern”, given its operational challenges.

Going concern is an accounting term for a company that is financially stable enough to meet its obligations and continue its business for the foreseeable future. Certain expenses and assets may