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:

Consumers

Individuals or organizations that use economic services or commodities.

Dumping

the practice of exporting goods to another country at a price below the normal charge in the home market, often considered unfair competition.

Market Share

The share of a market dominated by a specific company or product, typically represented as a percent of the overall sales within that market.

Cost of Production

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.