Auditors must adopt new standards for evaluating business continuity

The Spanish Institute of Accounting and Auditing of Accounts (ICAC) has issued a resolution on July 16, 2026 (BOE-A-2026-17276), submitting for public information the new Technical Auditing Standard regarding "Going Concern" (Empresa en funcionamiento), designated as NIA-ES 570 (Revised 2024). This standard represents the Spanish adaptation of the International Standards on Auditing (ISA) and aims to strengthen the reliability and transparency of the audit process concerning an entity's ability to maintain its operations in the foreseeable future.

What changes

The primary modification introduced by this resolution is the adoption of the NIA-ES 570 (Revised 2024), which replaces the previous version to align with the latest international requirements issued by the IAASB. This update is not an isolated change; it requires a systemic adjustment of the auditing framework in Spain. To ensure legal and technical coherence, the ICAC has also included mandatory concordance modifications affecting several other standards, specifically NIA-ES 200, 210, 220, 230, 250, and 260.

Key technical shifts include:

• Enhanced Assessment Procedures: Auditors are required to apply more rigorous procedures to evaluate whether material uncertainties exist regarding an entity's ability to continue as a going concern.
• Methodological Integration: The changes necessitate that audit firms update their internal quality control and documentation processes to reflect the new requirements of NIA-ES 220 and NIA-ES 230.
• Reporting Consistency: The modifications ensure that the communication with those charged with governance (NIA-ES 260) and the consideration of legal and regulatory frameworks (NIA-ES 250) are perfectly synchronized with the new going concern assessment criteria.
• Audit Report Structure: Following previous resolutions (such as the one from January 22, 2026), the audit report must maintain strict adherence to the new reporting requirements, including specific sections for legal requirements related to corporate tax as mandated by the LAC.

Context

The auditing landscape in Spain is undergoing a profound transformation driven by the need for higher quality and greater transparency in financial reporting. This resolution is part of a broader project led by the ICAC to update the entire suite of Spanish Technical Auditing Standards (NIA-ES), alongside the Internal Quality Management Standards (NIGC 1-ES and NIGC 2-ES) and the updated Glossary of Terms.

Historically, the assessment of a company's continuity was a critical but sometimes fragmented part of the audit. The international community, through the IAASB, identified a need to reinforce how auditors communicate risks related to business survival to the users of Annual Accounts (Cuentas Anuales) in Spain. By adapting the NIA-ES 570 (Revised 2024), Spain is ensuring that its local regulatory framework is fully harmonized with global best practices, providing a more robust shield for investors, creditors, and the general market against unforeseen insolvency risks.

Who is affected and how

While the regulation specifically dictates the technical conduct of auditors, its ripple effects reach various sectors of the economy.

Audit Firms and Professionals

This is the group most directly impacted. Auditors performing a Statutory Audit (Auditoría de Cuentas) in Spain must immediately begin integrating these new standards into their professional methodology. They are obligated to:

• Update audit planning and execution protocols to comply with the revised NIA-ES 570.
• Ensure that all audit documentation (NIA-ES 230) reflects the new assessment criteria.
• Train staff on the updated standards to avoid non-compliance during inspections.

Large Companies and Entities Subject to Audit

Companies required by law to undergo a statutory audit will experience a change in how their financial stability is scrutinized. While the company's internal accounting does not change, the scrutiny applied by the external auditor will be more intense. Management should be prepared to provide more detailed evidence and projections regarding their ability to continue operations, as the auditor's threshold for identifying "material uncertainty" has been refined by the new international standards.

SMEs and Sole Traders

Generally, SMEs and sole traders (autónomos) are not directly affected by this regulation, as they are typically not subject to the mandatory requirement of a statutory audit. However, if an SME voluntarily undergoes an audit for credit purposes or to satisfy third-party requirements, they will be subject to the same rigorous assessment standards as larger corporations.

What to do and when

As this resolution (BOE-A-2026-17276) concerns the public information stage, the immediate actions are focused on the regulatory process and subsequent implementation:

• Public Consultation: Stakeholders and professional bodies should participate in the public information period to provide feedback on the proposed adaptation of the NIA-ES 570.
• Methodological Update: Once the standard is officially finalized and enters into force, audit firms must update their internal manuals and quality control systems.
• Implementation in Audit Cycles: Firms must ensure that all audits conducted after the effective date strictly adhere to the revised procedures for evaluating going concern and the associated concordance changes in the other NIA-ES.

Given the technical complexity of these changes and their impact on audit methodology, we recommend that companies and audit professionals consult with the specialized legal and tax departments at BMC to evaluate the specific implications for their upcoming financial cycles.