Which of the Following Auditing Procedures Most Likely Would Assist

question 14

Multiple Choice

Which of the following auditing procedures most likely would assist auditors in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

• A)Inspecting title documents to verify whether any assets are pledged as collateral.
• B)Confirming with third parties the details of arrangements to maintain financial support.
• C)Reconciling the client's cash balance with the cut-off bank statement and the bank confirmation.
• D)Comparing the entity's depreciation and asset capitalization policies to other entities in the industry.

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Definitions:

Polynomial

A mathematical expression consisting of variables and coefficients, that involves only the operations of addition, subtraction, multiplication, and non-negative integer exponents.

Factor

A number that divides another number exactly, without leaving a remainder, or the process of breaking down expressions into simpler components that can be multiplied together.

Extraneous Solutions

Solutions that are derived during the process of solving an equation but do not satisfy the original equation.

Equation

A mathematical statement asserting the equality of two expressions, typically involving variables, and solved to find the values of those variables.