When is a going concern required?

A going concern assessment is required when management prepares financial statements and whenever events or conditions raise substantial doubt about the entity’s ability to continue for the next 12 months; auditors also evaluate this as part of their engagement procedures.

Can the assessment be signed electronically?

Yes. Electronic signatures that meet ESIGN and UETA requirements are valid provided the signer’s intent, consent, attribution, and record retention are documented; consumer disclosures may be required for certain regulated contexts.

Do I need a notary or witness?

Most assessments do not require notarization; supporting affidavits or attestations may require a notary or witnesses depending on jurisdiction or recipient requirements—verify state rules and counterparty expectations.

What supporting documents are typical?

Common attachments include cash flow schedules, bank confirmations, financing commitment letters, covenant calculations, and board-approved management plans to substantiate projections and mitigation steps.

How long should I retain the assessment?

Retain the assessment for the active term plus at least three years; industry or regulatory rules may extend this (for example, HIPAA 6 years or IRS recordkeeping minimums).

Who should sign the assessment?

Authorized management representatives such as the CFO or CEO should sign; include any required board or audit committee acknowledgments and note the signer’s title and authority.

Electronic Signature
Templates
Finance
Financial Going Concern Assessment

Financial Going Concern Assessment

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FINANCIAL GOING CONCERN ASSESSMENT

Entity Identification

Entity Name:

Registered Number / Tax ID

Assessment Prepared By

Title

Reporting Period End Date:

Scope and Basis of Assessment

This assessment has been prepared by management to evaluate the entity's ability to continue as a going concern for a period of at least twelve months following the reporting date. The assessment is based upon current facts, projections, and plans available to management as of the date below. Management acknowledges responsibility for the preparation of financial forecasts and for identification of events or conditions that may cast significant doubt on the entity's ability to continue as a going concern.

Assessment Prepared On

Indicators of Financial Distress

The following conditions were considered in forming the conclusion. Check all that apply and provide supporting detail where indicated.

Negative operating cash flows in recent periods

Existing or impending breach of loan covenants

Default or arrears under significant financing arrangements

Significant losses or decline in revenue

Inability to obtain refinancing or additional financing on commercially reasonable terms

Loss of major customer(s) or supplier disruption

Summary of Indicators and Supporting Facts

Financial Data Summary

Provide the latest relevant amounts and the most critical forecast metrics relied upon in this assessment.

Current Assets Current Liabilities Net Working Capital Cash and Cash Equivalents (Reporting Date)

Forecasted Cash Runway (months)

Debt Maturities within 12 months

Management’s Mitigating Plans

Describe the specific plans management has implemented or intends to implement to mitigate identified risks, including timing, commitments, and contingencies.

Mitigation Plan Summary Committed Financing Sources

Uncommitted Financing (Intent/Discussions)

Expected Timing of Funding

Assumptions and Key Estimates

Identify the principal assumptions underlying the forecasts and the degree of uncertainty associated with each assumption.

Key Assumptions

Material Uncertainties and Disclosures

Management shall determine whether there is a material uncertainty that requires disclosure in the financial statements. If a material uncertainty exists, provide the required disclosure language and the reasons why disclosure is necessary.

Disclosure Text (if applicable)

Conclusion

After consideration of the evidence and management's plans, select the conclusion that reflects management's assessment for the period specified.

No substantial doubt exists about the entity's ability to continue as a going concern for a period of at least twelve months from the reporting date.

Substantial doubt exists about the entity's ability to continue as a going concern. Management has identified material uncertainties that are disclosed in the financial statements.

Conclusion Explanation

Communication and Approvals

Indicate whether the assessment has been communicated to the Audit Committee, Board of Directors, and external auditors and provide details.

Communicated to Audit Committee

Communicated to Board of Directors

Communicated to External Auditor

Communication Details

Management Representation and Certification

By signing below, management certifies that the information provided in this assessment is true and complete to the best of management's knowledge, that forecasts and assumptions reflect management's best estimates, and that all material events or conditions known to management that could affect the entity's ability to continue as a going concern have been disclosed.

Prepared by (Management):

By:

Date:

Reviewed by (Independent Reviewer):

By:

Date:

What a Financial Going Concern Assessment Is

A Financial Going Concern Assessment documents whether an organization is likely to continue operating for the foreseeable future, typically 12 months from the report date. It summarizes management’s plans, liquidity forecasts, material uncertainties, and evidence supporting that evaluation. Auditors, lenders, and internal risk officers use the assessment to inform audit opinions, credit decisions, and contingency planning. The assessment combines quantitative indicators (cash flow forecasts, debt covenants, operating losses) with qualitative factors (market position, management actions, planned financing) to form a reasoned conclusion about survivability.

Why a Clear Going Concern Assessment Matters

A documented assessment improves decision-making by recording assumptions, evidence, and management plans; it supports audit transparency and helps lenders, boards, and regulators understand material uncertainties. Accurate assessments reduce misunderstandings about solvency and build a defensible record if conditions deteriorate.

Who Prepares and Reviews These Assessments

Documentation should be retained with the financial statements and made available to auditors, the board, and relevant regulators or creditors.

Management finance teams — prepare cash flow forecasts, list mitigating actions, and certify assumptions used in the evaluation.
External auditors — review evidence and issue audit opinions that reference going concern when material uncertainties exist.
Lenders and creditors — evaluate the assessment to adjust covenant terms, collateral requirements, or lending decisions.

Stepwise Process for Completing the Assessment

Follow these core steps to assemble a defensible going concern assessment and supporting schedules.

01

1. Gather Data: Collect latest financials, cash forecasts, and covenant schedules.
02

2. Identify Risks: Document conditions that could impair liquidity or solvency.
03

3. Model Scenarios: Prepare base, downside, and management plan scenarios.
04

4. Document Conclusion: State conclusion with rationale and references to evidence.

How the Assessment Fits Into Reporting Workflows

Integrate the assessment into month-end, audit, and board reporting to ensure timely review and decision making.

Prepare Draft: Finance drafts assessment and supporting schedules.
Internal Review: Controller and CFO review assumptions and outputs.
External Audit: Auditor evaluates evidence and issues opinion language.
Board Briefing: Present findings and management plans to the board.

Digital Workflow Settings for Online Completion

Configure a secure, auditable workflow before collecting signatures and approvals electronically.

Field	Configuration
Document Template	Create a master template with required fields and attachments.
Signer Roles	Assign roles: preparer, reviewer, approver, auditor reviewer.
Authentication	Use email + optional SMS or KBA for higher assurance.
Retention Policy	Set automatic archival and export settings for audit copies.

Technical Requirements for eSubmission and Signatures

Ensure the platform you use can export tamper-evident signed PDFs and retain a searchable audit record for compliance.

File Formats: PDF, DOCX accepted
Integrations: Connects to CRM and cloud storage
Authentication: Email, SMS, KBA

Core Elements to Include in a Professional Assessment

A complete assessment combines financial schedules, governance signoffs, scenario analysis, and documentary evidence to support the stated conclusion.

Executive Summary

Concise statement of the assessment conclusion and primary reasons, including whether management believes the entity will continue for the next 12 months.

Financial Projections

Detailed cash flow and income projections under base and stress scenarios, showing timing of deficits and sources of financing.

Covenant Schedule

Current covenant status, tests at measurement dates, expected breaches, and remedial plans or waivers sought from lenders.

Supporting Evidence

Bank statements, commitment letters, binding financing offers, or contracts that substantiate projected inflows or financing.

Management Plans

Concrete actions with timelines and responsible owners for cost reductions, capital raises, or asset dispositions.

Signatures and Approvals

Authorized signatory statements from CFO and CEO and space for board or audit committee acknowledgment.

Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Tamper-evident logs including IP and timestamps

BAA Availability: HIPAA BAA available where needed

Regulatory Frameworks: ESIGN and UETA compliance

Access Controls: Role-based permissions and SSO

Certifications: SOC 2 Type II and ISO 27001

Primary Risks from an Inaccurate Assessment

Audit Misstatement: Qualified opinion risk

Covenant Default: Acceleration or default risk

Regulatory Scrutiny: Enforcement or investigation

Reputational Harm: Loss of stakeholder confidence

Operational Disruption: Supplier or counterparty actions

Legal Exposure: Claims for misleading statements

Common Preparation Pitfalls to Avoid

Relying on optimistic assumptions without documentation; unsupported projections weaken conclusions and invite auditor challenge.
Omitting contingent obligations or off-balance commitments from cash forecasts, which can materially change liquidity outlooks.
Failing to align timing between cash flow schedules and covenant test dates, producing misleading compliance indicators.
Not documenting management-approved mitigation steps or failing to secure written financing commitments before stating a positive conclusion.

Timing and Key Deadlines for Assessments and Reporting

Schedule assessments to align with financial close, audit planning, and board meetings so conclusions are current and actionable.

Monthly Close Alignment:

Complete draft assessment with current month-end data prior to audit fieldwork.

Audit Request Deadline:

Provide signed assessment to auditors when requested during interim or year-end procedures.

Board Review:

Present conclusions at the next scheduled board or audit committee meeting.

Covenant Notification:

Notify lenders promptly of predicted covenant breaches per facility agreements.

Record Retention:

Retain signed assessment copies according to corporate retention policy and applicable law.

Representative eSignature Pricing and Feature Comparison

Below is a concise vendor comparison focusing on starting price, trial availability, bulk send, audit trail, and envelope limits.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No envelope cap	100 envelopes/user/year limit	Varies	Varies	Varies

Frequently Asked Questions About Going Concern Assessments

Answers to common practical and compliance questions when preparing, signing, and storing a Financial Going Concern Assessment.

Need help? Contact support

When is a going concern required?
A going concern assessment is required when management prepares financial statements and whenever events or conditions raise substantial doubt about the entity’s ability to continue for the next 12 months; auditors also evaluate this as part of their engagement procedures.
Can the assessment be signed electronically?
Yes. Electronic signatures that meet ESIGN and UETA requirements are valid provided the signer’s intent, consent, attribution, and record retention are documented; consumer disclosures may be required for certain regulated contexts.
Do I need a notary or witness?
Most assessments do not require notarization; supporting affidavits or attestations may require a notary or witnesses depending on jurisdiction or recipient requirements—verify state rules and counterparty expectations.
What supporting documents are typical?
Common attachments include cash flow schedules, bank confirmations, financing commitment letters, covenant calculations, and board-approved management plans to substantiate projections and mitigation steps.
How long should I retain the assessment?
Retain the assessment for the active term plus at least three years; industry or regulatory rules may extend this (for example, HIPAA 6 years or IRS recordkeeping minimums).
Who should sign the assessment?
Authorized management representatives such as the CFO or CEO should sign; include any required board or audit committee acknowledgments and note the signer’s title and authority.

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