An Important Method Used by Auditors to Learn of Material

question 59

Multiple Choice

An important method used by auditors to learn of material contingencies is

• A)examining documents in the client's possession concerning contingencies.
• B)inquiring and discussing them with management.
• C)obtaining responses to an attorney letter.
• D)confirming accounts receivable with the client's customers.

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Definitions:

Critical Role

An essential position or function within an organization that is fundamental to its operation or success.

Revenue Ruling 2007-41

A guideline issued by the IRS regarding the political activity limitations of tax-exempt organizations under section 501(c)(3) of the Internal Revenue Code.

Internal Revenue Service

The U.S. federal agency responsible for tax collection and tax law enforcement.

Campaign Involvement

Participation or engagement in a coordinated effort to achieve a specific goal, often related to political, social, or marketing campaigns.