Phil Nanere is the partner in charge of the audit for a new client, Western Wonderland (WW). The client engaged Phil’s audit firm in November 2019, in preparation for the 2020 audit. From January 30, 2020, 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. Phil is also aware from his review of correspondence between WW and its bank that the company has been experiencing cash flow problems since 2017.

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.