Page 109 - Auditinf Electronic System

▪ Fixed-term borrowings approaching maturity without realistic prospects of
renewal or repayment; or excessive reliance on short-term borrowings to
finance long-term assets.

▪ Indications of withdrawal of financial support by creditors
▪ Negative operating cash flows indicated by historical or prospective

financial statements.
▪ Adverse key financial ratios.
▪ Substantial operating losses or significant deterioration in the value of

assets used to generate cash flows.
▪ Inability to pay creditors on due dates.
▪ Inability to comply with the terms of loan agreements.
▪ Inability to obtain financing for essential new product development or

other essential investments.
Operating

▪ Management intentions to liquidate the entity or to cease operations.
▪ Loss of key management without replacement.
▪ Loss of a major market, key customer(s), franchise, license, or principal

supplier(s).
▪ Labor difficulties.
▪ Shortages of important supplies.
▪ Emergence of a highly successful competitor.
Other

▪ Non-compliance with capital or other statutory requirements.
▪ Pending legal or regulatory proceedings against the entity that may, if

successful, result in claims that the entity is unlikely to be able to satisfy.
▪ Changes in law or regulation or government policy expected to adversely

affect the entity.
▪ Uninsured or underinsured catastrophes when they occur

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬