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:

Jane Addams

An American reformer and social worker, co-founder of Hull House in Chicago, who was awarded the Nobel Peace Prize in 1931 for her efforts in promoting peace and social welfare.

Social Activism

The effort to promote, impede, or direct social, political, economic, or environmental reform or stasis with the desire to make improvements in society.

Patriarchy

A social system in which men hold primary power and predominate in roles of political leadership, moral authority, and control of property.

Political Power

The ability or capacity of a political entity, like an individual or an organization, to influence the actions, beliefs, or conduct of others, typically in a political context.