Which One of the Following Would the Auditor Consider to Be

question 13

Multiple Choice

Which one of the following would the auditor consider to be an indication of a potential going-concern problem?

• A)Loss of the controller to a competitor.
• B)Improper reporting of internal controls by management.
• C)Adverse key financial ratios.
• D)Large increase to sales in the month previous to year-end.

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Definitions:

Reducing Wait Time

The process of minimizing the amount of time customers or clients have to wait for service or product delivery.

Reducing Inventory

The process of decreasing the amount of goods or materials a company holds, often aimed at improving efficiency and reducing cost.

Within-Batch Wait Time

The delay experienced by units within a batch during a production process before they are processed.

Total Lead Time

The cumulative time required for a product to complete all stages of production, from initiation to final delivery.