Management Furnishes the Independent Auditor with Information Concerning Litigation, Claims

question 73

Multiple Choice

Management furnishes the independent auditor with information concerning litigation, claims, and assessments.Which of the following is the auditor's primary means of initiating action to corroborate such information?

• A) Request that client lawyers provide a legal opinion concerning the policies and procedures adopted by management to identify, evaluate, and account for litigation, claims, and assessments.
• B) Request that client management engage outside legal counsel to suggest wording for the text of a footnote explaining the nature and probable outcome of existing litigation, claims, and assessments.
• C) Request that client lawyers undertake a reconsideration of matters of litigation, claims, and assessments with which they were consulted during the period under examination.
• D) Request that client management send a letter of general inquiry to those lawyers with whom management consulted concerning litigation, claims, and assessments.

Evaluate the importance of timely and proper notification of contractual changes to all parties involved.

Critique legal arguments and outcomes in hypothetical contract law scenarios.

Understand the importance of managing time effectively for personal, academic, and professional success.

Recognize the role of self-motivation in successful online and self-directed learning.

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Definitions:

Terror

Intense, sharp, overmastering fear that can be both a psychological and physiological response to extreme or life-threatening situations.

Posttraumatic Stress Disorder

A psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event.

U.S. Civil War

A significant conflict from 1861 to 1865 in the United States between the Northern states (Union) and the Southern secessionist states (Confederacy) primarily over issues of slavery and states' rights.

Melancholia

A condition described by early Greek and Roman philosophers and physicians as consisting of unshakable sadness. Today it is known as depression.