When Auditing Contingent Liabilities, the Primary Objective at the Initial

question 82

Multiple Choice

When auditing contingent liabilities, the primary objective at the initial stage of the tests is to determine:

• A) the materiality of any liability.
• B) the likelihood of the liability.
• C) what constitutes adequate disclosure of the liability.
• D) the existence of the liability.

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Definitions:

Performance Risk

The potential threat that an action or strategy may not achieve its intended results or performance goals.

Management Development

A systematic process of training and growth by which individuals improve their management skills and capabilities.

Senior Leadership

The group of top executives and managers who make strategic decisions, guide an organization's direction, and ensure its success.

Developmental Assignment

A job assignment that is designed to develop the employee's skills and competencies as part of their career development.