When Auditors Perform Audit Procedures Relating to Contingent Liabilities and Subsequent

question 29

Multiple Choice

When auditors perform audit procedures relating to contingent liabilities and subsequent events,what evidence do the auditors gather for the financial statements as a whole?

• A)perform preliminary analytical procedures
• B)evidence from test of controls
• C)evidence from substantive testing
• D)obtain client representation letter

---

Definitions:

Organizational Context

The environment or setting within which an organization operates, including cultural, social, and operational factors that influence its functioning and strategy.

Expert Power

The influence someone has over others due to their specialized knowledge or skills.

Organize Information

The act of arranging data or details in a structured and coherent manner to facilitate better understanding and decision-making.

Personal Reward Power

The ability of an individual to influence others through the provision or withdrawal of rewards.