Going Concern - Non-Executive Directors, are you asking the right questions?
Executive, Non-Executive Directors and auditors are under more intense public scrutiny than ever. In this context, the assessment of Going Concern is a key area of focus – the conclusion reached impacts the basis of preparation of the financial statements and provides insight to investors and creditors as to whether a business is viable to invest in or to provide goods and services to.
Going Concern assessments are not simple to do. There are lots of moving parts, judgments and estimates, which can change and lead to increased risk that the board’s conclusions on Going Concern do not pan out as expected.
As a Non-Executive Director (‘NED’), getting close to Going Concern assessments and the judgments taken by Management teams is critical to ensuring the inherent risk around Going Concern assessment is reduced.
In this video, BDO specialists from across audit, debt advisory and restructuring provide guidance to NEDs on what to ask, when to ask, as well as some key lessons learnt from experience to help inform the challenge areas NEDs can bring to the assessment over Going Concern.
WATCH THE VIDEO