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

question 60

Multiple Choice

Auditors, as part of completing the audit, will request the client to send a standard inquiry to the client's attorney letter 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) obtain a professional opinion about the expected outcome of existing lawsuits and the likely amount of the liability, including court costs.
• C) obtain an outside opinion of the probability of losses in determining accruals for contingencies.
• D) obtain an outside opinion of the probability of losses in determining the proper footnote disclosure.

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Definitions:

Autism

A developmental disorder characterized by challenges with social interaction, communication, and restricted or repetitive behaviors.

Joint Attention

A form of shared attention between two or more individuals towards an object or event, crucial for social and language development.

Ecological View

The view, proposed by the Gibsons, that people directly perceive information in the world around them. Perception brings people in contact with the environment so that they can interact with and adapt to it.

Directly Perceive

The process of immediately recognizing and understanding sensory information without the need for conscious reasoning.