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:

Automatism

In painting, the process of yielding oneself to instinctive motions of the hands after establishing a set of conditions (such as size of paper or medium) within which a work is to be created.

Paranoic-critical

A method developed by Salvador Dalí meant to access the subconscious and enhance artistic creativity through a systematic irrational thought process.

Abstract Sculpture

A form of sculpture that emphasizes shapes, colors, and textures over realistic representation, focusing on the inherent beauty of the materials used.

Void

An empty space or emptiness, often used in art and architecture to describe areas devoid of any elements or materials.