Preliminary Going Concern Assessment Working Paper Template

Key benefits & value for the buyer

This “Preliminary Going Concern assessment” working paper is designed to convert professional judgment into audit evidence—fast. It focuses on compliance, clarity, and reusability so your team spends less time drafting and more time auditing.

Practical benefits

• Faster planning: Pre-populated prompts and risk indicators reduce the time to form an initial conclusion.
• Consistent quality: Standardized wording and cross-references increase consistency across partners and engagements.
• Stronger review trail: Audit procedures, evidence links, and workpaper sign-offs are laid out in a reviewer-friendly format.
• Customizable: Easily adapt wording, thresholds, and disclosure checks to firm-specific policies or client risks.

Use cases & real-life scenarios

How teams use the template in everyday audits:

• Year-end audits of SMEs: Rapidly capture management forecasts, cash runway calculations, and sensitivities when liquidity is the primary concern.
• Group audits: Prepare consistent local workpapers to be aggregated at group level, ensuring comparable documentation across subsidiaries.
• High-risk sectors: For entities in distress, the template’s stress-test matrix and disclosure checklist help document the heightened procedures needed under ISA.
• Interim reviews: Use the preliminary checklist at interim to flag matters needing further year-end procedures.

Example scenario: During an audit of a manufacturing client facing supply chain disruption, the team used the template to document management’s revised cash flow, perform sensitivity analysis (10% & 25% downside), record alternative financing confirmations, and reach a documented conclusion accepted by the engagement quality reviewer.

Who is this product for?

Designed specifically for audit and accounting firms, legal auditors, and accountants who apply international auditing standards (ISA & SOCPA) and manage comprehensive audit files. Typical users include:

• Engagement partners and senior managers preparing planning memoranda.
• Audit seniors documenting first-line procedures and evidence.
• Quality control reviewers who require clear traceability to standards.
• In-house audit teams and internal audit functions that need consistent templates aligned with external standards.

How to choose the right version

Choose based on format and scope:

• Word template: Best if you need narrative sections, sign-offs, and long-form conclusions.
• Excel working paper: Use for numerical models, cash-flow testing, and sensitivity scenarios with built-in formulas.
• Bundle: Includes both formats plus a PDF sample for immediate review — recommended for teams that want both narrative and numeric workpapers.

Consider your firm’s file structure and reviewers: if your practice requires tick-marks and auto cross-referencing, pick the Excel version to leverage linked evidence indices.

Quick comparison with typical alternatives

When deciding whether to buy this template, compare these options:

• Build from scratch: Time-consuming, higher risk of inconsistency, requires regular maintenance to stay ISA & SOCPA-compliant.
• Generic checklists: May miss ISA cross-references and lack numeric test structures for cash-flow testing.
• Firm-owned templates: Good when tailored, but developing them in-house requires resources and periodic quality reviews—this template can be used as a baseline or interim solution.

Our template bridges the gap: professional depth, immediate usability, and standards-mapped content—without the long development cycle.

Best practices & tips to get maximum value

• Tailor thresholds: Adjust materiality and sensitivity levels to client-specific circumstances before performing numerical tests.
• Link evidence: Cross-reference confirmations, board minutes, and forecasts to the template’s evidence fields to speed review.
• Document alternative procedures: Use the template prompts to record follow-up when management forecasts lack support.
• Train your team: Short internal sessions on how to populate the workpaper reduce review comments and rework.

Common mistakes when buying/using similar products and how to avoid them

• Buying a one-size-fits-all checklist: May omit numeric testing — use the Excel version for cash-flow modelling.
• Not customizing for SOCPA nuances: Ensure your team maps local requirements; our template includes SOCPA callouts.
• Failing to update: Check for periodic updates and purchase bundles that include revision notes.

Product specifications

• Formats included: Editable Word (.docx), Excel (.xlsx), and sample PDF
• Pages / Worksheets: Word — 6 pages of narrative sections; Excel — 4 linked worksheets for inputs, cash-flow model, sensitivity analysis, and evidence index
• Standards coverage: Mapped to key ISA paragraphs related to going concern and SOCPA equivalents
• Language: English (editable for translation)
• Compatibility: Microsoft Office 2016+ / Office 365; works with common cloud editors
• Usage notes: Template designed for one engagement file — duplicate for subsequent engagements and document version control

Frequently asked questions