Important Information Obtained Through Inquiry _______

question 85

Multiple Choice

Important information obtained through inquiry _______.

• A)should be forwarded to the client's legal counsel for review and approval
• B)should be disregarded if it contradicts management's statements and intentions
• C)should be corroborated with other evidence
• D)should be used in isolation

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Definitions:

Precautionary Motive

A rationale for holding money or liquid assets to guard against future uncertainties and potential emergencies.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Cash

Physical currency such as coins and banknotes or the equivalent in bank balances that can be immediately accessible.