Which of the Following Auditing Procedures Most Likely Would Assist

question 12

Multiple Choice

Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

• A) Inspecting title documents to verify whether any assets are pledged as collateral.
• B) Confirming with third parties the details of arrangements to maintain financial support.
• C) Reconciling the cash balance per books with the cut-off bank statement and the bank confirmation.
• D) Comparing the entity's amortization and asset capitalization policies to other entities in the industry.

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Definitions:

Redemptive Narrative

A story or account that focuses on the theme of redemption; overcoming obstacles or hardships to achieve a positive transformation.

AA Participants

Individuals involved in Alcoholics Anonymous, a fellowship program designed to help people recover from alcohol dependency.

Sobriety

The state of not being under the influence of alcohol or drugs, often used in the context of recovery from addiction.

Cognitive-behavioral Therapy

is a psychotherapeutic approach that aims to solve problems concerning dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.