Which one of the following factors is NOT a good indicator of potential financial failure?
A) Client relies heavily on debt financing, especially by financing permanent assets with short- term loans.
B) Client's retained earnings were reduced by half as a result of a large dividend payout.
C) Client is constantly short of cash and working capital.
D) Client has had increasing net losses for several years.
Correct Answer:
Verified
Q30: Tolerable misstatement as set by the auditor:
A)
Q31: Which one of the following discoveries by
Q32: In an audit area that has a
Q33: When there is a high degree of
Q34: AASB 1031 suggests guidelines.
A) relevant
B) quantitative
C) qualitative
D)
Q36: An aim of allocating a preliminary judgement
Q37: Auditors begin their assessments of inherent risk
Q38: Materiality and risk are concepts in planning
Q39: The amount of evidence required will be
Q40: The audit risk model is:
A) useful in
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