- financial statements for the last three years
- a 12 month cash flow forecast reflecting the proposed installment amounts
- written confirmation that the financial statements disclose all off-balance sheet arrangements and related party transactions.
- any inquiries from their IPA (independent public accounting) firm related to off-balance sheet arrangements and related party transactions and their responses.
- the results and reports of any internal audits, reviews or other analyses of off-balance sheet arrangements and related party transactions.
- any analyses it has performed to assess its current and future financial conditions.
- details on prior, current, and forecasted events that have had or are forecasted to have a favorable or unfavorable impact on its financial condition
- written policies and procedures that require
- evaluation of current financial conditions in order to anticipate and avoid unfavorable or adverse conditions
- periodic assessments of accounts payable and accounts receivable, including analysis of accounts payable aging and the collectability of accounts receivable
- periodic assessments to ensure compliance with any loan covenants and debt payment schedules
- preparation of cash flow forecasts, including reasonable and supported assumptions
- monitoring, analyzing and managing its cash flow
- periodic assessments of contract cost performance.
This listing is only the beginning. The auditor will likely spend at least a couple of days analyzing the data and reaching conclusion about the contractors financial viability.
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