When auditing contingent liabilities, the primary objective at the initial stage of the tests is to determine:
A) the materiality of any liability.
B) the likelihood of the liability.
C) what constitutes adequate disclosure of the liability.
D) the existence of the liability.
Correct Answer:
Verified
Q1: Adjustment of the financial statement may be
Q2: The auditor needs to perform procedures to
Q4: 'A potential future obligation to an outside
Q5: Footnote disclosure in the financial statement is
Q6: If the auditor concludes that there are
Q7: A letter from the client's external legal
Q8: How many presentation and disclosure objectives are
Q9: Inquiries of management (orally and in writing)regarding
Q10: No disclosure in the financial statement is
Q11: One of the auditor's primary concerns related
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