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:

Wood

A hard, fibrous material made from trees or shrubs, often used for construction, furniture, and fuel among other applications.

Production Function

A mathematical relationship expressing the maximum quantity of output that can be produced from a given set of inputs in a production process.

Plastic

Synthetic materials made from polymers that can be molded into shape while soft and then solidified, widely used in a vast range of products.

Wood

A hard, fibrous material made of the trunks and branches of trees, used for construction, making furniture, and other purposes.