Going Concern Assessment: The 12-Month Test Under ASC 205-40

Going concern assessment under ASC 205-40 is management’s evaluation, run every annual and interim reporting period, of whether it’s probable the entity can’t meet its obligations within one year after the financial statements are issued. It’s a GAAP requirement on management, not an audit procedure, so an unaudited company still owes it. Indinero’s CPA team reviews the conclusion during monthly close, inside the same engagement as bookkeeping, tax, and CFO advisory.