Question 14 3 pts This question is based on the 'NPI" fact pattem above. For purposes of this question only, assume the following data for N Pl: _ NPI Current Year NPI Prior Year Industry Average Current Ratio 4.05 4.95 1315 Based on this information. what auditor concerns do you have at the Planning Phase of the audit? Select all the statements below that are correct. C] We should closely monitor the account balances that form part of the covenant calculations. For example, we should be particularly careful about the existence ofAccounts Payable and other Current Liabilities. C] We should closely monitor the account balances that form part of the covenant calculations. For example, we should be particularly careful about the completeness of Accounts Payable and other Current Liabilities. C] Due to cross-default clauses on loans, it may be that the Term Loan would be called as well. This would be very problematic for the client such that the client may no longer be a going concern. C] Since the Current Ratio is above the minimum current ratio covenant of 4.00 the auditor should not be concerned. C] We should closely monitor the account balances that form part of the covenant calculations. For example, we should be particularly careful about the cut-off of Accounts Payable and other Current Liabilities. E] NPI does not appear to have sufcient cash to repay the Mortgage, if it were to be called. E] Going concern assumption may not be valid. If the client falls under the minimum Current Ratio specied by the covenant, then the bank may call the Mortgage. C] There is a heightened incentivefpressure for management fraudl'manipulation. The risk of a material misstatement due to fraud is higher