Which of the Following Is Not an Audit Procedure That

question 33

Multiple Choice

Which of the following is not an audit procedure that the independent auditor would perform with respect to litigation, claims, and assessments in audit procedures for subsequent events and contingent liabilities?

• A)Inquire of and discuss with management the policies and procedures adopted for identifying, evaluating, and accounting for litigation, claims, and assessments.
• B)Obtain a legal letter.
• C)Obtain a written representation from management that all litigation, asserted and unasserted claims, and assessments have been disclosed.
• D)Confirm directly with the entity's lawyer that all claims have been recorded in the financial statements.

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Definitions:

Thyroid Cartilage

A large cartilage of the larynx that is more prominent in males and is often referred to as the Adam's apple.

Elastic Cartilage

A type of flexible cartilage found in regions like the ears and epiglottis, characterized by its ability to return to its original shape after bending or folding.

Larynx

The voice box located in the throat, responsible for voice production, breathing, and protecting the trachea against food aspiration.

Compressed Air

Air that is pressurized and contained under greater pressure than the atmosphere, used in various tools, machines, and for cleaning or inflating purposes.