Which of the Following Auditing Procedures Most Likely Would Assist

question 50

Multiple Choice

Which of the following auditing 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)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 cash balance per books with the cutoff 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:

Hyaline Cartilage

Hyaline cartilage is a translucent type of cartilage found in areas such as the nose, trachea, and at the ends of bones, providing smooth surfaces for movement at joints.

Elastic Cartilage

Type of cartilage composed of elastic fibers, allowing greater flexibility.

Osteocytes

Mature bone cells that maintain the bone matrix and are involved in the regulation of bone density.

Canaliculi

Small, channel-like structures in bone tissue that allow for communication and nutrient/waste exchange between osteocytes.