going concern review .. cash flow audit procedure

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August 19, 2015 at 6:25 am #267709
mansoor
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One cashflow forecast audit procedures is described as follows:
“if relevant, inspect post year management accounts to compare the actual performance against forecast figures”
what does this mean?
is he comparing the forecast to actual for the year that is being audited? if yes, then how does this help??
please elaborate.
thanks
August 20, 2015 at 8:28 am #267844
Ken Garrett
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Going concern means looking forward. The budget looks forward and is a powerful piece of evidence for going concern conclusions. Comparing actual to budget in the new year will give an indication about how accurate and reliable the budget is.
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