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:

Work Group

A collection of individuals who come together to achieve a specific goal or work on a project within an organizational setting.

Full Productivity

The state of operating at maximum efficiency and output, often achieved when resources are optimally utilized.

Work Team Structure

The organization and arrangement of teams within a workplace, designed to enhance collaboration, efficiency, and task completion.

Bruce Tuckman

A psychologist known for his theory of group development stages: forming, storming, norming, performing, and adjourning.