Going-concern conversations that boards of closely held companies can prepare for

Going-concern assessment is a dialogue, not a trap. We ask for cash-flow forecasts covering at least twelve months from the report date, evidence of lender waivers if covenants are strained, and minutes showing how directors weighed alternatives.

Closely held boards sometimes keep plans oral. Written board minutes that record the review of forecasts and contingency actions strengthen the audit file and protect directors if later events diverge from the plan.

If management intends to raise capital or sell a division, we need correspondence with counterparties, not only internal spreadsheets. Unsigned letters of intent rarely carry enough weight alone.

Early notice of stress—preferably during interim review—gives time to gather evidence without compressing the opinion deadline.