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.

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Definitions:

Defenses

Legal arguments and strategies employed to contest allegations or charges in a legal case.

Fraudulent Misrepresentation

A false statement of fact made knowingly, or without belief in its truth, or recklessly, causing someone to enter into a contract.

Real Estate

Property comprising land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Basement

The lowest floor of a building, typically below ground level.