Audit Procedures for Bankruptcy and Insolvency Cases

When auditing bankruptcy and insolvency cases, auditors focus on assessing the financial condition and viability of the company. They perform specific procedures to evaluate the likelihood of bankruptcy or insolvency and the impact on the financial statements. Here is an objective type question related to audit procedures for bankruptcy and insolvency cases:

Objective Question: Which audit procedure is used to assess the going concern assumption and the likelihood of bankruptcy or insolvency? A$)$ Reviewing cash flow projections B$)$ Analyzing financial ratios C$)$ Evaluating management's plans to mitigate financial difficulties D$)$ Testing the valuation of assets and liabilities

Please select the correct answer $($A$,$ B$,$ C$,$ or D$).$