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.

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Definitions:

Travel Industry

Comprises businesses that cater to the needs of people traveling for leisure or business, including transportation, accommodation, and recreational activities.

Hardware

Hardware refers to the physical components that make up a computer system or network, including the CPU, memory, storage devices, and input/output devices.

Software

A set of instructions, data, or programs used to operate computers and execute specific tasks.

Interface

Refers to the point of interaction between two systems, devices, or programs, often allowing them to communicate or work together.