If Auditors Identify Risk Factors That Indicate That the Going

question 17

Multiple Choice

If auditors identify risk factors that indicate that the going concern assumption is in doubt, they will:

• A) Undertake procedures to gather evidence regarding each risk factor.
• B) Refuse to continue as the auditor of their client.
• C) Report the client to the Canada Revenue Agency.
• D) Reduce the extent of further audit testing that they undertake.

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Definitions:

Spoiled

Refers to food that has become unfit for consumption due to bacteria growth or other processes, or to a person, typically a child, who has become overindulged and lacks discipline.

Typecast

The process by which an actor is repeatedly cast in the same type of role, based on their physical appearance or previous success in similar roles.

Stubborn

Showing dogged determination not to change one's attitude or position on something, especially in spite of good arguments or reasons to do so.

Production Code Administration

The organization responsible for enforcing Hollywood's moral guidelines for films, known as the Hays Code, from the 1930s to the 1960s.