Inquiries of management (orally and in writing)regarding the possibility of unrecorded contingencies will NOT be useful in uncovering:
A) a particular type of contingency which management has overlooked.
B) a contingency where management does not comprehend account disclosure requirements.
C) management's intentional failure to disclose existing contingencies.
D) all of the above

Question

Quizplus · Accepted Answer

Inquiries of management, whether oral or written, are generally not effective in uncovering situations where management is intentionally failing to disclose existing contingencies. This is because if management is intentionally withholding information, they are unlikely to reveal such information simply in response to an inquiry.

Inquiries of Management (Orally and in Writing)regarding the Possibility of Unrecorded