Management Furnishes the Auditor with Information Concerning Litigation,claims,and Assessments

question 23

Multiple Choice

Management furnishes the auditor with information concerning litigation,claims,and assessments.Which of the following is the auditor's primary means of initiating action to corroborate such information?

• A)Request that the client's lawyers undertake a reconsideration of matters of litigation,claims,and assessments with which they were consulted during the period under examination.
• B)Request that the client's management send a letter of inquiry to those lawyers with whom management consulted concerning litigation,claims,and assessments.
• C)Request that the client's lawyers provide a legal opinion concerning the policies and procedures adopted by management to identify,evaluate,and account for litigation,claims,and assessments.
• D)Request that the client's management engage outside lawyers to suggest wording for the text of a footnote explaining the nature and probable outcome of existing litigation,claims,and assessments.

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Definitions:

Competitive

Relating to or characterized by competition; trying to win or be more successful than others.

Technological

Pertaining to technology, which involves the application of scientific knowledge for practical purposes, especially in industry.

Imitations

Products or services that closely copy or resemble another's in appearance or function but are not identical.

Misleading Strategies

Marketing or business tactics intended to deceive or lead customers or competitors astray.