Question: Before assessing control risk at a level lower than the maximum, the auditor obtains reasonable assurance that controls are in use and operating effectively. This

Before assessing control risk at a level lower than the maximum, the auditor obtains reasonable assurance that controls are in use and operating effectively. This assurance is most likely obtained in part by: A. Preparing flowcharts B. Performing substantive tests C. Analyzing tests of trends and ratios D. Inspection of documents 46. An auditor believes there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. In evaluating the entity's plans for dealing with the adverse effects of future conditions and events, the auditor most likely would consider, as a mitigating factor, the entity's plans to: Purchase production facilities that are currently being leased from a third party. A. Postpone expenditures to upgrade its information technology system. B. Pay cash dividends that are in arrears to the preferred shareholders. C. Increase the useful lives of property, plant, and equipment for depreciation purposes

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