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?

Question

Quizplus · Accepted Answer

Question D is the only one related to the company's relationship with financial institutions, specifically inquiring about their level of leverage through loans. The other questions deal with different aspects of the company's performance, auditing, and stock trading.

Which Types of Questions Should Be Asked About a Company's