Which of the Following Audit Procedures Would the Auditor Use

question 29

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 liability positions
• B)positive operating cash flows
• C)ability to pay creditors on due dates
• D)change from cash-on-delivery to credit transactions with suppliers
• E)loss of key management without replacement
• F)both A and E
• G)both B and C
• H)both D and E

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Definitions:

Piaget's Cognitive Developmental Theory

A theory by Jean Piaget that explains the stages of cognitive development from infancy to adulthood and how children construct a mental model of the world.

Preoperational Child

A stage in Piaget's theory of cognitive development where children from ages 2 to 7 engage in symbolic play and struggle with logic.

Facilitate Memory

Techniques or practices that improve the ability to recall information or experiences.

Theory Of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—both to oneself and to others, and to understand that others have beliefs, desires, and intentions that are different from one's own.