If an Attorney Refuses to Provide the Auditor with Information

question 92

Multiple Choice

If an attorney refuses to provide the auditor with information about material existing lawsuits or unasserted claims,

• A) the attorney may face sanctions from the American Bar Association.
• B) the auditors must modify their audit report to reflect the lack of available evidence.
• C) the attorney can no longer represent the client.
• D) the auditor must withdraw from the engagement.

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Definitions:

AASB 3

is the Australian Accounting Standards Board's standard on Business Combinations, detailing the accounting treatment for merging businesses, including the recognition and measurement of assets, liabilities, and any non-controlling interest.

IFRS 3

The International Financial Reporting Standard that deals with the accounting for business combinations, requiring assets, liabilities, non-controlling interest, and goodwill to be accounted for at fair value.

Mutual Entities

Organizations owned by their members, profits are distributed among them or used to reduce costs.

Transactions Costs

Transactions costs are the costs incurred in buying or selling a security or asset, which may include brokers' fees, taxes, and other charges.