Which of the Following Procedures Most Likely Would Assist an Auditor

question 54

Multiple Choice

Which of the following 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)Performing cutoff tests of sales transactions with customers with long-standing receivable balances.
• B)Evaluating the entity's procedures for identifying and recording related party transactions.
• C)Inspecting title documents to verify whether any real property is pledged as collateral.
• D)Inquiring of the entity's legal counsel about litigation,claims,and assessments.

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Definitions:

Index

A statistical measure or indicator that represents the variation or level of a specific phenomenon, often used in economics and finance.

Correlation Coefficient

A statistical measure that calculates the degree to which two variables move with each other, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Value

The importance, worth, or usefulness of something, often related to economic, moral, or personal significance.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.