Which of the Following Procedures Is Not Used in Auditors

question 12

Multiple Choice

Which of the following procedures is not used in auditors' examination of litigation, claims, and assessments?

• A)Obtaining a description and evaluation of litigation, claims, and assessments from management.
• B)Examining documentary evidence regarding litigation, claims, and assessments.
• C)Reading minutes of meetings of stockholders, directors, and appropriate committees.
• D)Performing analytical procedures.

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Definitions:

Company Performance

An assessment of a company's operations, financial health, and ability to meet its short and long-term objectives.

Level of Operations

The scale or magnitude at which a company or factory is producing goods or services.

Financial Capital Maintenance

An accounting concept that income is only recognized after the amount of the investor's capital has been maintained, or the financial position is at least as good at the end of the period as at the beginning.

Net Assets

The total assets of an entity minus its total liabilities, indicating the entity’s net worth or equity.