An Auditor Should Obtain Evidential Matter Relevant to All the Following

question 28

Multiple Choice

An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against a client except the:

• A)period in which the underlying cause for legal action occurred.
• B)probability of an unfavourable outcome.
• C)jurisdiction in which the matter will be resolved.
• D)existence of a situation indicating an uncertainty as to the possible loss.

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Definitions:

Expected Value

The predicted value of a variable, calculated as the sum of all possible values each multiplied by the probability of its occurrence.

Aluminum Concentrations

The amount of aluminum present in a substance, often measured in terms of mass per unit volume or mass per unit weight.

Wilcoxon Signed Rank Test

This statistical method, which is non-parametric, is employed to assess differences in the population mean ranks by comparing either two related or matched samples, or analyzing repeated measurements on one sample.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect, serving as the default assumption in hypothesis testing until evidence suggests otherwise.