Auditors, as Part of Completing the Audit, Will Request the Client

question 78

Multiple Choice

Auditors, as part of completing the audit, will request the client to send a letter of inquiry to those attorneys the company has been consulting with during the year under audit regarding legal matters of concern to the company.The primary reason the auditor requests this information is to:

• A)determine the range of probable loss for asserted claims.
• B)corroborate of information supplied by management concerning litigation, claims, and assessments.
• C)outside opinion of probability of losses in determining accruals for contingencies.
• D)outside opinion of probability of losses in determining the proper footnote disclosure.

Identify the structure of complex argument forms.

Critically assess the strength of inferences and conclusions.

Understand the application of logical patterns in various contexts.

Appreciate the historical and philosophical significance of logic.

---

Definitions:

Partial Payment

An amount paid that is less than the total due, often applied to a debt or invoice, which does not fully settle the outstanding amount.

Indorses

To sign the back of a financial instrument, thereby transferring ownership or to express support.

Drawee's Payment

Involves the party, usually a bank, upon which a check or draft is drawn, making the payment as specified to the payee or bearer.

Indorses

Indorses refers to the act of signing the back of a negotiable instrument, like a check, thereby transferring the title or the rights to another party.