Which One of the Following Would the Auditor Consider to Be

question 13

Multiple Choice

Which one of the following would the auditor consider to be an indication of a potential going-concern problem?

• A)Loss of the controller to a competitor.
• B)Improper reporting of internal controls by management.
• C)Adverse key financial ratios.
• D)Large increase to sales in the month previous to year-end.

---

Definitions:

Decision-making Consistency

The extent to which a consumer or organization consistently applies the same criteria or processes when making choices.

Business-to-business Accounts

Commercial transactions or relationships where products or services are exchanged between businesses rather than between businesses and consumers.

Environmental Goals

Objectives set by an organization or a government to reduce environmental impact and promote sustainability.

Social Goals

Objectives that relate to improving societal well-being and addressing the needs of a community or population.