Pending litigation can often be discovered by the audit team in its review of the minutes of the board of directors meetings.

Question

Quizplus · Accepted Answer

The review of minutes of the board of directors meetings is a common practice during an audit, and it can reveal information about pending or potential litigation that the company may be facing. The audit team can also request additional information from management about any legal matters that have not been disclosed in the minutes.

Pending Litigation Can Often Be Discovered by the Audit Team