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:

Secondary Appraisal

The evaluation of one's ability to cope with the consequences of a stressful event.

Physiological Response

The body's automatic reactions to internal or external stimuli, including changes in heart rate, breathing, and hormone levels.

Downward Comparison

A social comparison strategy where individuals compare themselves to others who are less well off in order to feel better about their own situation.

Coping Strategy

A coping strategy is a method or technique that an individual uses to manage and navigate stressful situations, challenges, or emotional conflicts.