The Primary Reason an Auditor Requests Letters of Inquiry Be

question 34

Multiple Choice

The primary reason an auditor requests letters of inquiry be sent to an entity's attorneys is to provide the auditor with:

• A)a description and evaluation of litigation, claims, and assessments that existed at the date of the balance sheet.
• B)an expert opinion as to whether a loss is possible, probable, or remote.
• C)the opportunity to examine the documentation concerning litigation, claims, and assessments.
• D)corroboration of the information furnished by management concerning litigation, claims, and assessments.

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Definitions:

Built-In Mechanism

An innate or inherent feature or function within a biological or mechanical system enabling it to operate effectively.

Light and Darkness

Fundamental aspects of the natural world, describing the presence or absence of visible electromagnetic radiation.

Temperature Fluctuations

Variations in the temperature of an environment or body over time.

Animal Influence

The effect that animals, through companionship, behavior, or by other means, have on human psychological well-being or societal traits.