Which of the Following Are Least Problematic for an Auditor

question 18

Multiple Choice

Which of the following are least problematic for an auditor about going concern issues of a potential audit client?

• A) Recent cash flow trends raise questions about the company's ability to pay its audit fees and other financial obligations.
• B) Recent financial instability heightens the company's risk for being sued.
• C) Escalating financial pressures heighten the company's risk of experiencing management fraud.
• D) Changing economic conditions create additional demand for the company's products.

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Definitions:

Gas Pump

A machine at a fuel station that dispenses liquid fuels such as gasoline, diesel, or ethanol-blended fuels into the tanks of vehicles.

South Dakota

A state located in the Midwestern region of the United States, characterized by its rolling plains and rugged national parks.

Price Elasticity

A measure of the sensitivity of the quantity demanded or supplied of a good to a change in its price.

Demand Function

A mathematical relationship that represents the quantity of a good or service consumers are willing to purchase at various prices.