All 18 Going Concern questions
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What disclosures are required when there is significant going concern doubt? How does going concern relate to Key Audit Matters (KAMs)? What is a material uncertainty related to going concern? How do going concern conclusions affect the auditor's report? How does subsequent-event review interact with going concern? What are the auditor's options if management is unwilling to make or extend a going concern assessment? How should the auditor handle a 'close call' going concern situation?
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Auditing & Assurance › Going Concern

How do you audit a cash flow forecast supporting going concern?

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Answer

Assess the reliability of the data and assumptions against historical accuracy, external evidence, and the entity's plans; check mathematical accuracy; perform sensitivity analysis on key drivers (sales, collections, financing); evaluate the availability and terms of financing facilities; and compare the forecast to actual post-year-end results. Corroborate mitigating actions (e.g., committed facilities, signed contracts).
Real-world example The auditor sensitizes the forecast to a 10% sales fall and confirms whether the entity would still meet obligations.

Common follow-ups: Why perform sensitivity analysis? | How do post-year-end actuals help?

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All 18 Going Concern questions