ISA 570 · Healthcare

Going Concern Checklist for Healthcare

Tailored going concern assessment for healthcare entities. Covers industry-specific indicators including funding dependency, regulatory compliance, staffing capacity, and medical liability exposure.

Engagement context

Set the entity details for your working paper. The assessment period is calculated per ISA 570.3.

Indicators

Check all indicators that apply to the entity. 21 indicators from ISA 570.A2/A7 including ISA 570 (Revised 2024) additions. Expand any indicator to see working paper guidance and the likely review challenge.

HighFinancial
Net liability or net current liability position
HighFinancial
Fixed-term borrowings approaching maturity without realistic refinancing prospects
HighFinancial
Loan covenant breaches or indications that financial support may be withdrawn
HighFinancial
Substantial operating losses or significant deterioration in the value of assets
MediumFinancial
Arrears or discontinuance of dividends
MediumFinancial
Inability to pay creditors on due dates
MediumFinancial
Adverse key financial ratios
MediumFinancial
Negative operating cash flows indicated by historical or prospective financial statements
HighOperating
Management intentions to liquidate the entity or cease operations
HighOperating
Loss of key management or personnel without replacement
HighOperating
Loss of a major market, franchise, licence, or principal supplier
MediumOperating
Labour difficulties or shortages of important supplies
MediumOperating
Fundamental changes in market or technology that the entity cannot adapt to
LowOperating
Dependence on the success of a particular project
HighOther
Legal proceedings or regulatory action that may result in claims the entity cannot meet
HighOther
Changes in law or regulation expected to adversely affect the entity
MediumOther
Non-compliance with capital or other statutory requirements
MediumOther
Catastrophic loss of a major asset
LowOther
Excessive dependence on short-term borrowings to fund long-term assets
MediumOther
Business interruption from cyber attacks or IT system failure
MediumOther
Exposure to climate-related physical or transition risks threatening the business model

ISA 570 Going Concern Reference Card: free PDF

One page for your planning folder: the indicator severity matrix, ISA 570.3 assessment period checklist, draft MURGC paragraph, ISA 570.16–.19 evidence requirements, and a summary of the key ISA 570 (Revised 2024) changes effective December 2026. Plus one practical audit insight per week.

No spam. We're auditors, not marketers.

PREMIUM

Export audit-ready ISA 570 working paper

Professional PDF with full indicator analysis, sensitivity tables, management plan documentation, procedures checklist, draft auditor's report paragraph, and sign-off fields. Drop it straight into your audit file.

Professional working paper PDF with engagement header
All 0 indicators with ISA 570 paragraph citations
Management's mitigation plans documented per ISA 570.16
Cash flow runway stress test with 4 scenarios
Sensitivity analysis: impact of additional indicators
Disclosure adequacy assessment (ISA 570.19–23)
ISA 570 (Revised 2024) readiness checklist
Procedures checklist and draft auditor's report paragraph
Prepared by / Reviewed by / Partner sign-off fields
One-time purchase
14.99
Get Working Paper — €14.99

Instant PDF download
Works in any PDF reader
ISA 570 compliant

Not satisfied? Full refund.

Visa · Mastercard · PayPal · iDEAL · SEPA
How the score works

Each indicator is weighted by severity: High = 3 points, Medium = 2 points, Low = 1 point.

Assessment levels are determined by two criteria (whichever is met first):

  • Substantial doubt: ≥2 high-severity indicators OR weighted score ≥8
  • Significant concern: ≥1 high-severity indicator OR weighted score ≥4
  • Limited concern: Weighted score ≥1
  • No indicators: Score = 0

The 21 indicators are sourced from ISA 570.A2 (current) and ISA 570 (Revised 2024) A7, covering financial, operating, and other categories.

This scoring is a starting point for professional judgment. The auditor must consider entity-specific circumstances, industry context, and the collective effect of indicators when forming a conclusion.

ISA 570.9: The auditor shall evaluate management's assessment of the entity's ability to continue as a going concern.

ISA 570.A2/A7: Events or conditions that may cast significant doubt include financial, operating, and other indicators.

ISA 570.16: If events or conditions have been identified, the auditor shall obtain sufficient appropriate audit evidence about whether a material uncertainty exists.

Going concern assessment: Healthcare

Healthcare entities face going concern risks that intertwine financial sustainability with regulatory compliance and clinical capacity. For publicly funded healthcare organisations, funding is politically determined and can change with government priorities. For private healthcare, patient volumes and payer mix drive viability. In both cases, staffing shortages, regulatory sanctions, and medical liability claims can rapidly escalate into going concern situations.

Key risk factors: Healthcare

Key healthcare going concern indicators include: government funding reductions or changes in reimbursement formulae, regulatory sanctions or loss of accreditation, inability to recruit and retain clinical staff at sustainable cost levels, medical malpractice claims that exceed insurance coverage, declining patient volumes or unfavourable payer mix shifts, and capital expenditure requirements for ageing facilities or mandatory technology upgrades (e.g. electronic health records).

Funding dependency — for publicly funded entities, assess the security and duration of government funding commitments. Annual funding cycles create inherent uncertainty if commitments don't extend 12 months beyond the signing date.

Regulatory compliance — loss of accreditation or a regulatory enforcement action can prevent the entity from operating. Assess the status of any regulatory findings, inspection results, or improvement notices.

Staffing capacity — healthcare entities cannot operate without qualified clinical staff. Assess vacancy rates, agency staff dependency (which is typically more expensive), and the entity's ability to attract permanent staff.

Medical liability and insurance — assess the adequacy of professional indemnity insurance and the status of any claims that could exceed coverage. Uninsured or underinsured claims can be catastrophic.

Patient volume and referral patterns — for entities dependent on referrals (specialist clinics, diagnostic centres), a loss of referring relationships can significantly reduce revenue.

Capital expenditure requirements — healthcare facilities have mandatory maintenance and technology requirements. If the entity cannot fund necessary upgrades, regulatory closure is a possibility.

Frequently asked questions

What are the key going concern risk factors for healthcare?
Key healthcare going concern indicators include: government funding reductions or changes in reimbursement formulae, regulatory sanctions or loss of accreditation, inability to recruit and retain clinical staff at sustainable cost levels, medical malpractice claims that exceed insurance coverage, declining patient volumes or unfavourable payer mix shifts, and capital expenditure requirements for ageing facilities or mandatory technology upgrades (e.g. electronic health records).
What should auditors consider when assessing going concern for healthcare?
Funding dependency — for publicly funded entities, assess the security and duration of government funding commitments. Annual funding cycles create inherent uncertainty if commitments don't extend 12 months beyond the signing date. Regulatory compliance — loss of accreditation or a regulatory enforcement action can prevent the entity from operating. Assess the status of any regulatory findings, inspection results, or improvement notices. Staffing capacity — healthcare entities cannot operate without qualified clinical staff. Assess vacancy rates, agency staff dependency (which is typically more expensive), and the entity's ability to attract permanent staff. Medical liability and insurance — assess the adequacy of professional indemnity insurance and the status of any claims that could exceed coverage. Uninsured or underinsured claims can be catastrophic. Patient volume and referral patterns — for entities dependent on referrals (specialist clinics, diagnostic centres), a loss of referring relationships can significantly reduce revenue. Capital expenditure requirements — healthcare facilities have mandatory maintenance and technology requirements. If the entity cannot fund necessary upgrades, regulatory closure is a possibility.
What is the ISA 570 going concern assessment period?
The going concern assessment must cover at least 12 months from the date the financial statements are expected to be authorised for issue, not from the balance sheet date. This distinction matters: for entities with a long time between year-end and signing, the assessment period may extend significantly into the future.

Get practical audit insights, weekly.

No exam theory. Just what makes audits run faster.

290+ guides published20 free toolsBuilt by practicing auditors

No spam. We’re auditors, not marketers.