At the Completion of the Audit, Management Is Typically Asked

question 116

True/False

At the completion of the audit, management is typically asked to make a written statement as a part of the engagement letter that it is aware of no undisclosed contingent liabilities.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Unrealized Loss

A decrease in the value of an investment or asset that has not been sold, thus the loss has not been realized or converted into an actual loss.