Ten Questions
Boards should ask
Yes
No
N/A
  1. Does Net Income translate into Cash Flow?
  2. Is Revenue growth fully explained?
  3. Is there a lot of non-operating activity?
  4. Are estimates and accruals reasonable?
  5. Are the external auditors free to do their job?
  6. Are financial ratios consistent over time?
  7. Are Internal Controls a high priority?
  8. Is there any reason to doubt management?
  9. Are Related Party Transactions fully disclosed?
10. Are Receivables, Inventory, and Payables solid?

© 2009, Gaylen K. Bunker, All Rights Reserved