Which of the Following Is Not an Audit Procedure That

question 87

Multiple Choice

Which of the following is not an audit procedure that the independent auditor would perform concerning litigation, claims, and assessments?

• A) Obtain assurance from management that it has disclosed all unasserted claims that the lawyer has advised are probable of assertion and must be disclosed.
• B) Confirm directly with the client's lawyer that all claims have been recorded in the financial statements.
• C) Inquire of and discuss with management the controls adopted for identifying, evaluating, and accounting for litigation, claims, and assessments.
• D) Obtain from management a description and evaluation of litigation, claims, and assessments existing at the balance sheet date.

---

Definitions:

Elevated Mood

A state of enhanced emotional well-being or happiness, often more than is typical for an individual.

Euphoria

An intense state of happiness, confidence, or well-being, sometimes beyond what is considered normal.

Bipolar Disorder

A mental disorder marked by alternating periods of elation and depression.

Onset

The beginning or start of something, often referring to the initial stage of a disease or condition.