Which of the following audit procedures would the auditor use to identify conditions that may indicate doubt that the company will continue as a going concern for a reasonable period of time?
A)net asset positions
B)negative operating cash flows
C)ability to pay creditors on due dates
D)change from credit to cash-on-delivery transactions with suppliers
E)loss of key management with replacement
F)both A and E
G)both B and C
H)Both B and D

Question

Quizplus · Accepted Answer

Negative operating cash flows and a change from credit to cash-on-delivery transactions with suppliers are indicators of financial distress, which may raise doubt about a company's ability to continue as a going concern.

Which of the Following Audit Procedures Would the Auditor Use