Recruiter's Glossary

Examples: Independence • Fraud Risk • Segregation of Duties

Going Concern

Term from Auditing industry explained for recruiters

A Going Concern is a basic accounting idea that means a company is healthy enough to stay in business for the foreseeable future. When auditors or accountants mention "Going Concern" on their resume, they're talking about their experience in evaluating whether companies can continue operating without major financial troubles. It's like a health check-up for businesses - they look at things like whether the company can pay its bills, has enough cash flow, and isn't at risk of closing down. This evaluation is a crucial part of financial audits and is especially important for investors and stakeholders who need to know if a business is stable.

Examples in Resumes

Performed Going Concern assessments for 20+ medium-sized businesses during annual audits

Led team evaluations of Going Concern status for clients in challenging financial situations

Prepared Going Concern analysis reports for manufacturing clients during COVID-19 crisis

Typical job title: "Auditors"

Also try searching for:

Financial Auditor External Auditor Internal Auditor Audit Manager Risk Assessment Specialist Audit Senior Financial Analyst

Where to Find Auditors

Professional Organizations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: Can you explain a situation where you had to make a difficult Going Concern evaluation?

Expected Answer: A senior auditor should describe their experience in evaluating complex financial situations, how they assessed various risk factors, and how they communicated sensitive findings to management and stakeholders.

Q: How do you approach training junior staff on Going Concern assessments?

Expected Answer: Should demonstrate leadership ability and explain how they break down complex Going Concern evaluations into manageable steps for junior staff, including key risk indicators and documentation requirements.

Mid Level Questions

Q: What factors do you consider when evaluating Going Concern status?

Expected Answer: Should mention reviewing cash flow projections, debt obligations, market conditions, management plans, and historical financial performance to assess business sustainability.

Q: How do you document Going Concern issues in audit working papers?

Expected Answer: Should explain their process for documenting evidence, conclusions, and discussions with management about Going Concern matters in clear, well-organized working papers.

Junior Level Questions

Q: What is a Going Concern and why is it important in auditing?

Expected Answer: Should be able to explain that Going Concern means a company's ability to continue operating in the foreseeable future and why this matters for financial statements and stakeholders.

Q: What are some basic warning signs that might indicate Going Concern issues?

Expected Answer: Should identify basic red flags like negative cash flows, major losses, loan defaults, or loss of key customers that might question a company's ability to continue operating.