When a Question Arises Regarding the Going-Concern Basis, Additional Procedures

question 25

Multiple Choice

When a question arises regarding the going-concern basis, additional procedures may be necessary.Which of the following procedures is an example of a valid additional procedure?

• A)Evaluate management's plans for future actions in relation to its going concern assessment.
• B)Consider whether any additional facts or information have become available since the date on which management made its assessment.
• C)Where the entity has prepared a cash flow forecast, and analysis of the forecast is a significant factor in considering the future outcome of events or conditions in the evaluation of management's plans for future actions, determine whether there is adequate support for the assumptions underlying the forecast.
• D)All of the above.

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Definitions:

Existential Import

The assumption within a statement that asserts the existence of the subject matter it mentions.

Affirmative Subalternate

A proposition that is universally affirmative, implying a particular affirmative proposition as well.

Subcontraries

In the traditional square of opposition, a pair of propositions that, in virtue of their logical form, could both be true but could not both be false (I and O).

Universal

A characteristic or condition that applies to everything or everyone.