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Going-concern warning

A note from the auditor saying there is real doubt the company can keep operating for the next year — usually because it cannot see where the cash to pay its bills is coming from.

Example

A company with loans due in six months, no cash and no agreed refinancing would attract one.

Worth knowing

It is the most serious thing an auditor routinely says. Companies do recover from one, often by raising money or selling assets, but it is never routine.

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