Martin Stanaway is the partner in charge of the audit for a new client, Western Wonderland (WW). The client engaged Martin’s audit firm in November 2017, in preparation for the 2018 audit. From 30 January 2018 onwards, WW has consistently paid its suppliers late, well in excess of the suppliers’ agreed credit terms. This has resulted in some suppliers demanding cash on delivery from WW. Martin is also aware from his review of correspondence between WW and its bank that the company has been experiencing cash flow problems since 2016.

Required

Identify any significant events or conditions that individually or collectively may cast significant doubt on WW’s ability to continue as a going concern.