The auditing standards require the auditor to design audit procedures and plan the audit to identify litigation,claims,and assessments involving the company that may increase the risk of material misstatement.The auditor does this by
A) asking management and others in the company,including the in-house legal counsel about potential legal liabilities
B) reviewing minutes of meetings of those charged with monitoring and correspondence between the company and its internal counsel
C) reviewing the expense accounts related to legal expense
D) reviewing tax returns
E) investigating customer complaints
F) both A and B
G) both A and C
H) both D and E
Correct Answer:
Verified
Q1: Examples of contingent liabilities include
A)lawsuits requesting the
Q3: As auditors gather evidence to determine whether
Q4: On the last day of fieldwork,the auditors
Q5: The auditor is provided with the evidence
Q6: If the auditors find misstatements in the
Q7: Financial statements are prepared with the assumption
Q8: Examples of contingent liabilities include
A)lawsuits requesting the
Q9: The auditing standards require the auditor to
Q10: When a company issues an annual report
Q11: Examples of contingent liabilities include
A)lawsuits requesting the
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