The auditor is provided with the evidence needed to determine whether the contingent liability should be recorded,disclosed or ignored from
A)attorneys hired by the auditor
B)attorneys hired by the claimant
C)professional judgment
D)attorneys hired by the client

Question

Quizplus · Accepted Answer

Attorneys hired by the client have the most direct and relevant information about the contingent liability and can provide the necessary evidence to the auditor. However, the auditor must exercise professional judgment in evaluating the evidence provided and determining the appropriate treatment of the contingent liability. Attorneys hired by the auditor or claimant may also provide relevant information, but it is typically not as direct or material to the auditor's decision-making process as the information provided by the client's attorneys.

The Auditor Is Provided with the Evidence Needed to Determine