AI Modules/Procedures/Going Concern

SA 570 · Procedure· 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 the கணக்காய்வாளர் to evaluate 16 indicators across financial, operating, and other categories before concluding on the going concern basis. CORAA pre-fills the eight financial indicators from Balance Sheet, P&L, and Cash Flow data தானாகவே. The four operating and four other indicators require கணக்காய்வாளர் judgment with Yes/No/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 / Cash Flow with ஆதாரம் captured
Operating 4 and Other 4 require Yes/No/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 எங்கேஜ்மென்ட்கள்
-Quantitative ஆதாரம் (working capital, debt service) recomputed manually
-Conclusion drawn without an explicit linkage to Opinion type
-Memo often added at audit close as an afterthought

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

CORAA

On the Ledger

All 16 SA 570 indicators rendered in a structured grid
Financial 8 pre-filled from BS / P&L / Cash Flow with the underlying ஆதாரம் shown
Operating and Other indicators captured with கணக்காய்வாளர் notes
Each indicator paragraph-anchored to SA 570
Conclusion explicitly linked to Opinion type via the mapping table
Memo locked, audit-trailed, defensible

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

How it works

Three steps. Every trace logged.

Step 01

Auto-prefill the financial indicators

CORAA reads BS, P&L, and Cash Flow to compute the eight financial indicators, working capital position, debt-service coverage, current ratio trend, net liability detection, accumulated losses, and three more. Each shows the ஆதாரம் inline (the computation, the underlying ledgers).

Step 02

Confirm operating and other indicators

The four operating indicators (loss of key வாடிக்கையாளர், supply chain disruption, employee unrest, technology obsolescence) and four other indicators (pending litigation, ஒழுங்குமுறை action, breach of covenant, parent support uncertainty) require கணக்காய்வாளர் judgment. Yes/No/N/A with notes.

Step 03

Conclude and link to Opinion

Based on the 16 indicators, the கணக்காய்வாளர் 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 Cash Flow. Each indicator shows the underlying ஆதாரம், the formula, the source ledgers, the numerical result. The கணக்காய்வாளர் 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 கணக்காய்வாளர் judgment. CORAA captures Yes/No/N/A with notes. Common indicators include loss of major வாடிக்கையாளர், supply chain disruption, ஒழுங்குமுறை action, pending litigation with material impact, and parent-நிறுவனம் support uncertainty.

›4 operating indicators
›4 other indicators including legal and ஒழுங்குமுறை
›Yes/No/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
›கணக்காய்வாளர் confirms or overrides
›கணக்காய்வுத் தடம் captures the linkage

Defensible ஆவணப்படுத்தல்

Every indicator is paragraph-anchored to SA 570 (Revised). Every conclusion is ஆதாரம்-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
›ஆதாரம் captured per indicator
›Memo locked at sign-off
›SA 230 ஆவணப்படுத்தல் requirements satisfied

Frequently asked

Answers, up front.

CORAA reads Balance Sheet, P&L, and Cash Flow data and computes each financial indicator. Working capital position (Current Assets minus Current Liabilities), debt-service coverage ratio, current ratio trend, net liability detection, accumulated losses against networth, persistent operating cash outflows, debt repayment near maturity, and accumulated debt-equity trend. The கணக்காய்வாளர் 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 கணக்காய்வாளர் 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, Step 3 of the seven-step Opinion workflow cannot advance until Going Concern is concluded.

Yes. If conditions change mid-எங்கேஜ்மென்ட் (a major வாடிக்கையாளர் cancels, a covenant breach surfaces), the கணக்காய்வாளர் can unlock the memo with a documented re-evaluation note per SA 230. The original conclusion and the revised conclusion are both preserved in the கணக்காய்வுத் தடம்.

See it on a real ledger

Run going concern on one of your engagements.

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