When a Question Arises About an Entity's Continued Existence, the Auditor

question 14

Multiple Choice

When a question arises about an entity's continued existence, the auditor should consider factors tending to mitigate the significance of negative information concerning the entity's means for maintaining adequate cash flow. An example of such a factor is the

• A) Possibility of purchasing certain assets rather than leasing them.
• B) Capability of extending the due dates of existing debt.
• C) Appropriateness of changing depreciation methods from double declining balance to straight line.
• D) Marketability of property and equipment that management plans to keep.

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Definitions:

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and motivate followers through their charm, persuasiveness, and compelling vision.

Organizational Citizenship Behaviour

Voluntary actions performed by employees that contribute to the overall positive functioning and environment of an organization beyond their formal job requirements.

Follower Satisfaction

The level of happiness and contentment that followers or subordinates feel regarding their leadership's direction and actions.

Transactional Leadership

A leadership style focused on the exchange between leaders and followers, where achievement of specific tasks leads to rewards or punishments.