All 18 Going Concern questions
More in Going Concern
What is a support letter (comfort letter) in a going concern context? What are indicators that going concern may be in doubt? How does the auditor evaluate management's going concern assessment? What time period does the going concern assessment cover? What disclosures are required when there is significant going concern doubt? How does going concern relate to Key Audit Matters (KAMs)? What is a material uncertainty related to going concern? How do going concern conclusions affect the auditor's report? How do you audit a cash flow forecast supporting going concern? How does subsequent-event review interact with going concern?
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What are mitigating factors in a going concern assessment?

Intermediate

Answer

Mitigating factors are actions/plans that could alleviate doubt: committed financing or refinancing, asset disposals, cost reductions, shareholder/parent support (sometimes via a support letter), new contracts, or equity injections. The auditor evaluates whether these are feasible, likely, and sufficiently committed—not merely intentions—before relying on them.
Real-world example A parent-company support letter and a committed bank facility together mitigate doubt about the subsidiary's going concern.

Common follow-ups: What makes a mitigating factor reliable? | What is a letter of support?

Audit Evidence & Procedures Audit Report & Opinions Going Concern
All 18 Going Concern questions