Which of the Following Audit Procedures Would the Auditor Use

question 82

Multiple Choice

Which of the following audit procedures would the auditor use to identify conditions that may indicate doubt that the company will continue as a going concern for a reasonable period of time?

• A)net asset positions
• B)negative operating cash flows
• C)ability to pay creditors on due dates
• D)change from credit to cash-on-delivery transactions with suppliers
• E)loss of key management with replacement
• F)both A and E
• G)both B and C
• H)Both B and D

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Definitions:

Cortes

Hernán Cortés, a Spanish conquistador who led an expedition that caused the fall of the Aztec Empire and brought large portions of what is now mainland Mexico under the rule of the King of Castile in the early 16th century.

Malintzin

Also known as La Malinche, she was an Indigenous woman who played a crucial role as an interpreter, advisor, and intermediary for the Spanish conqueror Hernán Cortés during the Spanish conquest of Mexico.

Greater Antilles

The Greater Antilles is a grouping of the larger islands in the Caribbean Sea, including Cuba, Jamaica, Hispaniola (Haiti and the Dominican Republic), and Puerto Rico.

Encomiendas

A Spanish colonial practice that granted colonists the right to demand tribute and labor from indigenous peoples in the Americas, effectively a form of forced labor and enslavement.