Action steps

1. Perform balance sheet review, financial analysis

2. Determine appropriateness of significant accounting policies

3. Assess each balance sheet asset

4. Assess significant balance sheet liability accounts, perform financial analysis

5. Summarize review of financial analysis position

6. Perform review of trading projections, based on financial analysis

7. Review sales projections

8. Review cost of sales projections

9. Review overhead projections

10. Review interest and other overhead accounts

11. Perform sensitivity and financial analysis on key variables

12. Prepare adjusted trading/operating projections

13. Perform review of cash flow projections

14. Understand lending covenants

15. Review management's key assumptions

16. Assess cash flow for accuracy and completeness

17. Ensure consistency with your understanding of the opening

balance sheet and projected trading statement

18. Perform review of balance sheet projections

19. Prepare adjusted balance sheet projections