The Auditor Is Required to Obtain Evidential Matter On Litigation

question 25

Multiple Choice

The auditor is required to obtain evidential matter on litigation, claims, and assessments. This information need not include the:

• A) existence of the condition or situation.
• B) period in which the underlying cause for legal action occurred.
• C) degree of probability of an unfavorable outcome.
• D) description and evaluation of the situation.
• E) amount or range of potential loss.

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Definitions:

Rapidly Changing

Referring to situations, environments, or conditions that are undergoing quick or significant transformations.

Member Skills

pertain to the abilities and competencies possessed by individuals within a group or organization, contributing to collective performance and success.

Improve

To make or become better in quality, efficiency, or effectiveness.

Mental Model

A cognitive framework consisting of beliefs and assumptions that people use to understand and interpret the world.