Which of the Following Audit Procedures Most Likely Would Assist

question 378

Multiple Choice

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

• A) Reading the minutes of meetings of the stockholders and the board of directors.
• B) Comparing the market value of property to amounts owed on the property.
• C) Reviewing lease agreements to determine whether leased assets should be capitalized.
• D) Inspecting title documents to verify whether any assets are pledged as collateral.

---

Definitions:

Plate Boundaries

The edges where two tectonic plates meet, characterized by seismic and volcanic activity due to plate interactions such as divergence, convergence, or transformation.

Volcano

a geological formation that occurs when magma from within the Earth's mantle or crust escapes to the surface, often resulting in eruptions.

Plate Boundaries

The edges where two tectonic plates meet, often associated with earthquakes and volcanic activity.

Volcano

A geological formation, typically a mountain, where magma (lava), volcanic ash, and gases are expelled through the earth's crust.