Guide on Trading Whilst Factually Insolvent

This guide is concerned with the situation where an auditor's client continues to trade in factual insolvency when its liabilities exceed its assets fairly valued.

This guide is concerned with the situation where an auditor's client continues to trade in factual insolvency when its liabilities exceed its assets fairly valued. Hence, it deals particularly with irregularities that are likely to take place in that situation; with the auditor's compliance with his/her duty to report thereon; and with the steps that the client might take to satisfy the auditor that no irregularity is taking place.