In an Audit of Contingent Liabilities, Which of the Following

question 591

Multiple Choice

In an audit of contingent liabilities, which of the following procedures would be least effective?

• A) Reviewing a bank confirmation letter.
• B) Examining customer confirmation replies.
• C) Examining invoices for professional services
• D) Reading the minutes of the board of directors.

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Definitions:

Moro Reflex

An involuntary response seen in newborns, where they suddenly extend their arms and legs and then pull them back in if they feel like they are falling.

Stimuli

External or internal factors that elicit a response or reaction from organisms.

Automatic Response

An involuntary reaction to a stimulus that occurs without conscious thought as a result of learning or biological predisposition.