A Major Means by Which an Auditor Obtains Evidence About

question 12

Multiple Choice

A major means by which an auditor obtains evidence about material contingencies is

• A)Examining documents in the client's possession concerning contingencies.
• B)Enquiring and discussing them with management.
• C)Obtaining a response from the client's lawyer to the client's letter of enquiry.
• D)Reading minutes of stockholders' meeting.

Analyze the role of past consideration in contract law and its typical exclusion from forming valid consideration.

Acquire knowledge of special circumstances where courts might intervene in contract agreements, focusing on fairness and legalities involved.

Understand the implications of different organizational structures and departmentations on quality, coordination, and adaptability.

Comprehend the principles of total quality management and their application within organizations.

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that describes the body's short-term and long-term reactions to stress.

Distress

Negative stress, the kind felt during an illness or when going through a divorce.

Major Life Changes

Significant events or transitions in a person's life that require adaptation, such as marriage, divorce, moving to a new location, or significant loss.

Cognitive Appraisal

The thinking evaluation of an event or situation that varies from person to person and, for an individual, from day to day.