D.
| Presentation and disclosure. |
| 8. |
An auditor has substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time because of negative cash flows and working capital deficiencies. Under these circumstances, the auditor would be most concerned about the
| A. |
control environment factors that affect the organizational structure. |
| B. |
correlation of detection risk and inherent risk. |
| C. |
effectiveness of the entity's internal control activities. |
| D. |
possible effects on the entity's financial statements. |
|
| 9. |
Which of the following types of audit evidence provides the least assurance of reliability?
| A. |
Receivable confirmations received from the client's customers. |
| B. |
Prenumbered receiving reports completed by the client's employees. |
| C. |
Prior months' bank statements obtained from the client. |
| D. |
Municipal property tax bills prepared in the client's name. |
|
| 10. |
Which of the following is a management assertion regarding account balances at the period end?
| A. |
Transactions and events that have been recorded have occurred and pertain to the entity. |
| B. |
Transactions and events have been recorded in the proper accounts. |
| C. |
The entity holds or controls the rights to assets, and liabilities are obligations of the entity. |
| D. |
Amounts and other data related to the transactions and events have been recorded appropriately. |
|
