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During the first year audit of Junebug Corporation, the auditors, Firefly CPAs are interested in...

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Accounting

During the first year audit of Junebug Corporation, the auditors, Firefly CPAs are interested in independently assessing the entity's ability and viability as a going concern. Despite assurances by senior management related to this area, Firefly CPAs would like to confirm this independently of the firm's management. Which of the following would be a suitable way for Firefly CPAs to achieve this?
O Firefly CPAs should consider auditing the entire population associated with all financing activities to look for irregularities and anomalies which might indicate the client will face solvency problems in the near future.
Firefly CPAs should consider performing substantive testing on all internal controls related to the going concern assumption.

O Firefly CPAs might decide to contact all third parties that the client owes money to, including vendors and creditors, and

request a full repayment history. This can be used to assess Junebug's viability as a going concern.
Firefly CPAs should consider assessing whether the client is able to generate sufficient cash flows from operations to cover current debts such as interest expenses and long-term expenses such as loan maturities.

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