Which of the following audit procedures would most likely assist an auditor in identifying conditions and events that may indicate there could be substantial doubt about an entity's ability to continue as a going concern?
A)Review compliance with the terms of debt agreements
B)Confirmation of accounts receivable from principal customers
C)Reconciliation of interest expense with debt outstanding
D)Confirmation of bank balances

Question

Quizplus · Accepted Answer

Reviewing compliance with the terms of debt agreements would help the auditor identify any potential defaults or violations that could affect the entity's ability to obtain future financing and continue as a going concern. The other procedures listed are important in their own right, but they would not specifically assist in identifying indications of substantial doubt about the entity's ability to continue as a going concern.

Which of the Following Audit Procedures Would Most Likely Assist