What Action Will a Lawyer Likely Take If They Have

question 17

Multiple Choice

What action will a lawyer likely take if they have information about a lawsuit that was not mentioned by the client?

• A)They will tell the auditor the number of suits and request the auditor to contact the client.
• B)They will request the client to notify the auditor about the lawsuit.
• C)They will not mention the lawsuits since they are confidential.
• D)They will refuse to answer the legal letter,since it is incorrect.

---

Definitions:

Common-size Statements

Financial statements that present line items as a percentage of a base figure, such as total assets or net sales, enabling easy ratio analysis.

Financial Statement Item

Any line item or element found on a financial statement, such as an income statement or balance sheet, representing the financial performance or position of a business.

Base Amount

A reference value or starting point used in financial calculations to evaluate changes or differences in monetary terms.

Inventory Turnover

A ratio that measures how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.