When obtaining evidence regarding litigation against an entity, the CPA would be least interested in determining:
A)an estimate of when the matter will be resolved.
B)the period in which the underlying cause of the litigation occurred.
C)the probability of an unfavorable outcome.
D)an estimate of the potential loss.

Question

Quizplus · Accepted Answer

While an estimate of when the matter will be resolved may be of interest to the client, it is not relevant to the CPA's assessment of the potential impact on financial statements. The CPA would be more interested in determining the period in which the underlying cause of the litigation occurred, the probability of an unfavorable outcome, and an estimate of the potential loss.

When Obtaining Evidence Regarding Litigation Against an Entity, the CPA