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:

Equilibrium Test

A diagnostic procedure used to assess the balance and coordination by evaluating the vestibular system, which includes parts of the inner ear and brain.

Vision

The ability to perceive and interpret the surrounding environment using light that enters the eyes.

Unsteadiness

The quality or condition of being unstable or lacking balance.

Vestibular Input

Sensory information from the inner ear that helps maintain balance and spatial orientation.