A Written Client Representation Letter Most Likely Would Be an Auditor's

question 982

Multiple Choice

A written client representation letter most likely would be an auditor's best source of corroborative information of a client's plans to:

• A) Terminate an employee pension plan.
• B) Make a public offering of its common stock.
• C) Settle an outstanding lawsuit for an amount less than the accrued loss contingency.
• D) Discontinue a line of business.

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Definitions:

Saigon

Former name of Ho Chi Minh City, it was the capital of South Vietnam until the end of the Vietnam War in 1975.

Détente

A period of improved relations between two countries that were previously in conflict or tension.

Soviet Union

A federal socialist state in Eastern Europe and Asia, existing from 1922 to 1991, and was a major player in global affairs.

Foreign Policy

A government's strategy in dealing with other nations, including diplomacy, military action, and other interactions.