Numerous indicators of internal problems and operating difficulties can serve as warning signs of the risk of business failure.

It has been suggested that it takes an entity's financial data one to three years longer to indicate problems and weaknesses than would be available from a direct assessment of operating indicators. This type of information is generally omitted by financial distress prediction models based on publicly available financial information, but can be observed by auditors. Thus, it represents a type of inside information to which auditors have access and which should improve their ability to identify increases in the risk of business failure. In fact, those who favour auditor reporting in connection with "going concern" uncertainties often do so because they believe that this inside information makes auditor reporting more reliable than judgments based on external indicators alone.

Select the characteristics that best describe the client.

The operating indicators are broken down into four groups:

• general
• marketing
• production
• personnel

The operating indicators are presented over a number of screens. Use the menu to move from screen to screen.

In addition to the quantitative financial indicators, a number of qualitative financial indicators are evaluated.