The Auditor's Primary Means of Obtaining Corroboration of Management's Information

question 1

Multiple Choice

The auditor's primary means of obtaining corroboration of management's information concerning litigation is a:

• A)letter of audit inquiry to the entity's lawyer.
• B)letter of corroboration from the auditor's lawyer upon review of the legal documentation.
• C)confirmation of claims and assessments from the other parties to the litigation.
• D)confirmation of claims and assessments from an officer of the court presiding over the litigation.

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Definitions:

Inventory

The total amount of goods and materials held by a company awaiting sale or use in production.

Accounts Receivable

Funds that customers owe a business for products or services already delivered or utilized but not yet paid for.

Raw Materials

Fundamental substances or components used in the initial stages of the manufacturing process to produce goods.

Cash Disbursements

The payment of cash by a business for expenses, purchases, or obligations.