Which of the Following Audit Procedures Would the Auditor Use

question 90

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)inability to pay creditors on due dates
• D)change from cash-on-delivery to credit transactions with suppliers
• E)loss of key management with replacement
• F)both A and B
• G)both B and C
• H)both D and E

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Definitions:

Cognitive Conflict

A psychological state characterized by difficulty in resolving differences between existing knowledge and new information.

Affective Conflict

Emotional conflict arising from interpersonal disagreements or differences in values, beliefs, and feelings among members of a team or organization.

Cohesiveness

The quality of forming a united whole or working together effectively towards common goals within a group or organization.

Decoded Message

A message that has been converted from a coded or encrypted format back into its original form of language, making it understandable.