India Audit Lens
Assess going concern, inventory, and income-statement risk
Use these examination screens to orient and perform targeted work over financial-statement, inventory and transaction data. Their ratios, models, thresholds and anomaly labels identify areas for professional…
By India Audit Lens product team · Updated 2026-07-17
Perform the SA 570 going-concern assessment
Review the computed risk orientation
Generate the engagement Balance Sheet and Profit & Loss first. Open Examination → Going Concern → Risk Summary. Read the overall score/verdict and its amber/red bands. Review every Vital Signs metric and direction. A favourable year-on-year arrow does not turn a metric outside its safe zone into an all-clear. Click a risk-domain cell to inspect its underlying indicators. Review available distress-model zones and understand their data basis/limitations. Verify missing debt/loan-master fallbacks and any incomplete ratio inputs before relying on the orientation.
Build and stress the forecast
Open Forecast & Stress. Click Start a 12-month forecast. Enter opening cash and the management-supported monthly inflow/outflow assumptions; add rows as needed. Click Save & analyse. Review the scenario projection, sensitivity view and reverse stress test. Retain evidence for assumptions and compare to approved budgets, post-year-end performance, financing terms and management plans.
Examine inventory
The inventory checks compute live from normalised stock data; there is no separate Run button.
Open Examination → Inventory → Stock Movement & Dormancy. Review No Stock Movement, Opening-Only, Purchased, Never Sold and Slow-Moving (180d). Inspect closing quantity and last movement, then capture items requiring existence/NRV work. Open Negative Stock (SA 501) and select an item to review negative episodes, maximum depth and dates. Consider cut-off, existence and source-data sequencing. Open Valuation Method (AS 2). Treat a LIFO label as possible non-compliance and an ambiguous label as requiring review; a universally blank method is a data gap. Open Manufacturing Yield and inspect…
The slow-moving period and manufacturing-yield tolerance are internal analytics thresholds, not automatic statutory conclusions.
Review revenue, expenses, collections, and SA 520 signals
Confirm sales invoices, purchase invoices and receipts are normalised and the engagement period is correct. Open Examination → Revenue & Expense → Revenue. Review gross revenue, credit notes, net revenue, average invoice, monthly trend and CN ratio. Inspect the Top 10 Customers and concentration indicators; click a party to view source invoices. Open the expense view and review composition/top vendors with the same source drill-down. Open Collections and review collection ratio, receivables ageing and top overdue customers. Open Analytical Procedures (SA 520) and inspect deterministic…
The screen aggregates normalised subledger records, so it may differ from the TB when data is missing/unmapped. Its period filter scopes records but does not itself test cut-off or revenue recognition. Document the substantive/controls work used to resolve each flagged risk.
Expected result
The going-concern workpaper contains supported assumptions, conclusion and reviewer sign-off; inventory signals are resolved through evidence; income-statement/collection analytics are traced to source and reconciled to the wider audit; and supported exceptions are captured rather than left only on analytical dashboards.