Module VI· Model Auditing & DebuggingIntermediate
Question
How do you diagnose a constant balance-sheet imbalance across all years?
Answer
A constant imbalance usually means an opening balance-sheet issue or a one-time historical link error. Check starting balance sheet, retained earnings, cash, debt, and equity. If the imbalance is the same amount every year, the forecast mechanics may be fine but the model began out of balance or missed one opening adjustment.