Which of the Following Is the Primary Source for Evidence

question 7

Multiple Choice

Which of the following is the primary source for evidence to corroborate the existence of pending litigation?

• A)Vendor confirmations.
• B)Disclosures in financial statements.
• C)Management representation letters.
• D)Attorney confirmations.

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Definitions:

Liable

Being legally responsible or obligated.

Sarbanes-Oxley Act

A U.S. federal law that aims to protect investors by making corporate disclosures more reliable and accurate, enhancing financial transparency and accountability.

Audit Committee

A subcommittee of a company's board of directors responsible for overseeing financial reporting, audit processes, and compliance with laws and regulations.

Public Accounting Firm

A business organization that provides auditing, tax, consulting, and financial advisory services to clients.