AI Modules/Procedures/Going Concern

SA 570 · ಕಾರ್ಯವಿಧಾನ· विधि

Going Concern

Sixteen indicators. Eight auto-prefilled from financials. Opinion linked.

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CORAA Going Concern Assessment, 16 indicators

SA 570 (Revised) requires ಆಡಿಟರ್ ಗೆ evaluate 16 indicators across financial, operating, and other categories before concluding on the ಗೋಯಿಂಗ್ ಕನ್ಸರ್ನ್ basis. CORAA pre-fills the eight financial indicators from Balance Sheet, P&L, ಮತ್ತು ಕ್ಯಾಶ್ ಫ್ಲೋ ಡೇಟಾ ಸ್ವಯಂಚಾಲಿತವಾಗಿ. The four operating and four other indicators require ಆಡಿಟರ್ judgment with ಹೌದು/ಇಲ್ಲ/N/A confirmation. The final conclusion drives the Opinion type per the SA 570 → SA 700 mapping table.

16 indicators per SA 570 (Revised), financial 8, operating 4, other 4
Financial 8 auto-prefilled from BS / P&L / ಕ್ಯಾಶ್ ಫ್ಲೋ with evidence captured
Operating 4 and Other 4 require ಹೌದು/ಇಲ್ಲ/N/A confirmation with notes
Each indicator anchored to its SA 570 paragraph reference
Conclusion drives Opinion type via the SA 570 → SA 700 mapping table
Going Concern Appropriate w/o MUEC → Unmodified; Inappropriate → Adverse

Two paths, one ledger

The old way, and ours.

Two paths to the same audit conclusion. One leaves traces; the other doesn't.

Traditional

The old way

-Going Concern memo written as free-form prose
-Indicators evaluated inconsistently across ಎಂಗೇಜ್‌ಮೆಂಟ್‌ಗಳು
-Quantitative evidence (working capital, debt service) recomputed manually
-Conclusion drawn without an explicit linkage to Opinion type
-Memo often added at ಆಡಿಟ್ close as an afterthought

NFRA frequently flags Going Concern documentation as incomplete or inconsistent with the Opinion issued.

CORAA

On the Ledger

ಎಲ್ಲಾ 16 SA 570 indicators rendered in a structured grid
Financial 8 pre-filled from BS / P&L / ಕ್ಯಾಶ್ ಫ್ಲೋ with the underlying evidence shown
Operating and Other indicators captured with ಆಡಿಟರ್ notes
Each indicator paragraph-anchored to SA 570
Conclusion explicitly linked to Opinion type via the mapping table
Memo locked, ಆಡಿಟ್-trailed, defensible

Going Concern conclusion fully retraceable to underlying evidence. NFRA-inspection ready.

How it works

Three steps. Every trace logged.

Step 01

Auto-prefill the financial indicators

CORAA reads BS, P&L, and ಕ್ಯಾಶ್ ಫ್ಲೋ to compute the eight financial indicators, working capital position, debt-service coverage, ಪ್ರಸ್ತುತ ಅನುಪಾತ ಪ್ರವೃತ್ತಿ, ನಿವ್ವಳ ಹೊಣೆಗಾರಿಕೆ ಪತ್ತೆ, accumulated losses, and three more. Each shows the evidence inline (the computation, the underlying ಲೆಡ್ಜರ್‌ಗಳು).

Step 02

Confirm operating and other indicators

The four operating indicators (loss of key customer, supply chain disruption, employee unrest, technology obsolescence) and four other indicators (pending litigation, ನಿಯಂತ್ರಕ action, breach of covenant, parent support uncertainty) require ಆಡಿಟರ್ judgment. ಹೌದು/ಇಲ್ಲ/N/A with notes.

Step 03

Conclude and link to Opinion

Based on the 16 indicators, the ಆಡಿಟರ್ concludes, Going Concern Appropriate, Going Concern Appropriate with MUEC (Material Uncertainty Existing), or Going Concern Inappropriate. The conclusion drives the Opinion type via the SA 570 → SA 700 mapping table.

Inside the module

What you actually get.

AI pre-fill of financial indicators

CORAA computes and pre-fills eight financial indicators from BS, P&L, and ಕ್ಯಾಶ್ ಫ್ಲೋ. Each indicator shows the underlying evidence, the formula, the source ಲೆಡ್ಜರ್‌ಗಳು, the numerical result. The ಆಡಿಟರ್ confirms or overrides with notes.

›Net liability or net current liability position
›Long-term borrowing repayment near maturity
›Persistent operating cash outflows
›Accumulated losses exceeding networth
›Current ratio trend and absolute level
›Three more financial indicators

Operating and other indicators

Eight non-financial indicators require ಆಡಿಟರ್ judgment. CORAA captures ಹೌದು/ಇಲ್ಲ/N/A with notes. Common indicators include loss of major customer, supply chain disruption, ನಿಯಂತ್ರಕ action, pending litigation with material impact, and parent-company support uncertainty.

›4 operating indicators
›4 other indicators including legal and ನಿಯಂತ್ರಕ
›ಹೌದು/ಇಲ್ಲ/N/A confirmation with notes
›Each anchored to SA 570 paragraph

SA 570 → SA 700 Opinion mapping

The Going Concern conclusion directly drives the Opinion type. Going Concern Appropriate w/o MUEC → Unmodified. With MUEC → Unmodified with Emphasis of Matter (SA 706). Inappropriate use of Going Concern basis → Adverse Opinion. Disagreement on whether MUEC exists → Qualified.

›Mapping rendered on the WP
›Recommended Opinion type pre-filled
›ಆಡಿಟರ್ confirms or overrides
›ಆಡಿಟ್ ಜಾಡು captures the linkage

Defensible documentation

Every indicator is paragraph-anchored to SA 570 (Revised). Every conclusion is evidence-backed. The Going Concern memo is locked at sign-off; revision requires a documented note per SA 230. NFRA-inspection ready.

›SA 570 paragraph anchors per indicator
›Evidence captured per indicator
›Memo locked at sign-off
›SA 230 documentation requirements satisfied

Frequently asked

Answers, up front.

CORAA reads Balance Sheet, P&L, ಮತ್ತು ಕ್ಯಾಶ್ ಫ್ಲೋ ಡೇಟಾ ಮತ್ತು computes each financial indicator. Working capital position (Current Assets minus Current Liabilities), debt-service coverage ratio, ಪ್ರಸ್ತುತ ಅನುಪಾತ ಪ್ರವೃತ್ತಿ, ನಿವ್ವಳ ಹೊಣೆಗಾರಿಕೆ ಪತ್ತೆ, accumulated losses against networth, persistent operating cash outflows, debt repayment near maturity, and accumulated debt-equity trend. The ಆಡಿಟರ್ sees the computation inline.

SA 570 (Revised) maps to SA 700 / 706: Going Concern Appropriate without Material Uncertainty Existing Conditions → Unmodified Opinion. With MUEC adequately disclosed → Unmodified with Emphasis of Matter under SA 706. With MUEC inadequately disclosed → Qualified or Adverse. Inappropriate use of Going Concern basis → Adverse. CORAA pre-fills the recommended Opinion type based on the conclusion; the ಆಡಿಟರ್ confirms or overrides.

Leave the indicator pending. The Going Concern memo cannot be locked while any indicator is unresolved. CORAA also surfaces unresolved indicators as Opinion sign-off blockers, ಹಂತ 3 of the seven-ಹಂತ Opinion ಕಾರ್ಯಪ್ರವಾಹ cannot advance until Going Concern is concluded.

ಹೌದು. If conditions change mid-ಎಂಗೇಜ್‌ಮೆಂಟ್ (a major customer cancels, a covenant breach surfaces), the ಆಡಿಟರ್ can unlock the memo with a SA ಪ್ರಕಾರ ದಾಖಲಿತ ಮರು-ಮೌಲ್ಯಮಾಪನ ಟಿಪ್ಪಣಿ 230. The original conclusion and the revised conclusion are both preserved ಆಡಿಟ್ ಜಾಡಿನಲ್ಲಿ.

See it on a real ledger

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