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)positive 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 without replacement
F)both A and B
G)both C and E
H)Both D and E

Question

Quizplus · Accepted Answer

D) Change from credit to cash-on-delivery transactions with suppliers and E) Loss of key management without replacement are indicators of potential going concern issues. These conditions can signal financial distress or significant operational challenges that might threaten the company's ability to continue operating.

Which of the Following Audit Procedures Would the Auditor Use