When Auditing Contingent Liabilities,the Primary Objective at the Initial Stage

question 46

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)what constitutes adequate disclosure of the liability.
• C)the likelihood of the liability.
• D)the existence of the liability.

---

Definitions:

Unnecessary

Not needed or essential; something that could be omitted without any loss of functionality or value.

Romance Of Leadership

A theory suggesting that people have a tendency to attribute organizational success to the actions and decisions of leaders, often overlooking external factors and the contributions of others.

Overestimate

To assess a value, quantity, or importance of something as greater than its actual reality, leading potentially to miscalculation or error.

Task Oriented

Focused on completing tasks and achieving goals, often valuing efficiency and productivity over interpersonal relationships.