Which of the following audit procedures is most likely to identify doubts about the appropriateness of the going concern assumption?
A)Evaluating management's plans to restructure debt.
B)Reviewing compliance with the terms of loan agreements.
C)Considering management's plans to delay expenditure.
D)Reviewing management's plans to dispose of assets.

Question

Quizplus · Accepted Answer

Reviewing compliance with the terms of loan agreements can reveal breaches or potential breaches that may indicate financial difficulties, raising doubts about the entity's ability to continue as a going concern.

Which of the Following Audit Procedures Is Most Likely to Identify