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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Recovery Act

Refers to legislation aimed at promoting economic recovery, such as the American Recovery and Reinvestment Act of 2009 intended to stimulate the U.S. economy.

Environmental Protection Agency

A U.S. federal agency created for the purpose of protecting human health and the environment by enforcing regulations based on laws passed by Congress.

Safe Drinking Water Act

A federal law in the United States aimed at ensuring the quality of Americans' drinking water by regulating its sources and contaminants.

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Regulations determining the minimum quality of water provided for human consumption to ensure it is safe and free from contaminants.