Which of the Following Conditions or Events Most Likely Would

question 64

Multiple Choice

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

• A)Significant related party transactions are pervasive.
• B)Usual trade credit from suppliers is denied.
• C)Arrearages in preferred stock dividends are paid.
• D)Restrictions on the disposal of principal assets are present.

---

Definitions:

Occupational Area

A specific domain or field of work that requires particular skills and knowledge, such as finance, engineering, or healthcare.

Mentoring Program

A structured arrangement where experienced individuals provide guidance, advice, and support to less experienced people.

Protégés

Individuals who receive guidance and support from more experienced mentors, typically in a professional setting.

Reciprocal Nature

The characteristic of being mutual or having a relationship in which two parties influence or have effects on each other.