In an audit of contingent liabilities, which of the following procedures would be least effective?
A)Examining customer confirmation replies.
B)Reviewing a bank confirmation letter.
C)Examining invoices for professional services.
D)Reading the minutes of the board of directors meetings.

Question

Quizplus · Accepted Answer

Examining customer confirmation replies would be the least effective procedure as it is unlikely that customers would have information about contingent liabilities that are not disclosed to the public. The other procedures listed, such as reviewing a bank confirmation letter, examining invoices for professional services, and reading the minutes of the board of directors meetings, are more likely to provide relevant information about contingent liabilities.

In an Audit of Contingent Liabilities, Which of the Following