Which types of questions should be asked about a company's relationship with financial institutions?

a. Is a significant part of the company's income or revenues derived from one or two large transactions?
b. Has management placed unreasonable demands on the auditor, including unreasonable time constraints?
c. Has significant "short selling" of the company's stock occurred? If so, for what reasons?
d. Is the organization highly leveraged through bank or other loans?


d
FEEDBACK: a. Incorrect.
b. Incorrect.
c. Incorrect.
d. Correct.

Business

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