Which of the following 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. Inquiring of the entity's legal counsel about litigation, claims, and assessments.
B. Inspecting title documents to verify whether any real property is pledged as collateral.
C. Performing cutoff tests of sales transactions with customers with long-standing receivable balances.
D. Evaluating the entity's procedures for identifying and recording related party transactions.
Answer: A
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The Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Superior to record the building on its records at $500,000?
A. Monetary unit assumption. B. Revenue recognition principle. C. Measurement (Cost) principle. D. Business entity assumption. E. Going-concern assumption.
Having less variety in clients, industries, and issues is an example of which of the following?
a. advantage of internal consulting b. advantage of external consulting c. disadvantage of internal consulting d. disadvantage of external consulting
In the conflict model of decision-making, the decision style of ______ involves passing the decision off to someone else, putting off the decision, or devaluing the importance of making a decision.
A. complacency B. vigilance C. defensive avoidance D. interdependence
. Chloe’s process includes plans of action that involve enhancing and modifying existing ideas to create better alternatives and new possibilities. Her process is ______.
a. challenging b. development strategies c. expanding d. exposing