ASA 5022 Audit Evidence - Specific Considerations for Litigation and Claims

question 6

Multiple Choice

ASA 502.2 Audit Evidence - Specific Considerations for Litigation and Claims states that the auditor shall obtain sufficient appropriate audit evidence regarding:

• A)the completeness of litigation and claims involving the entity.
• B)the probability of any revenue or expense arising from legal matters.
• C)the adequacy of the legal representation of the entity.
• D)all of the above.

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Definitions:

Ounce

A unit of weight equal to one sixteenth of a pound or approximately 28.35 grams in the Imperial system.

Cross-multiplication

A mathematical technique used to simplify or solve equations by multiplying the numerator of one fraction by the denominator of another.

X

Often used to represent an unknown variable in mathematics.

Unit Price

The unit price is the cost per unit of a product, allowing for a standard comparison of costs among different sized packages of the same item.