The IIA released its Three Lines Model in July 2020 as an update to the highly-regarded Three Lines of Defence Model promulgated in 2013. Many practitioners either love it or hate it, while others (including this author) vacillate between the two states.
In our previous Salient Point (Issue 3), we discussed how a company could go about preparing a cash flow forecast. Such a forecast, as mentioned in that article, could be helpful to improve the company’s cash flow visibility under uncertain times. Additionally, cash flow forecast could be used to determine the value of the business using the discounted cash flow (“DCF”) method. Such a valuation could be used for, amongst other things, fund-raising, impairment assessment and/or reporting to stakeholders.