Which of the Following Is Not a Common Audit Procedure

question 61

Multiple Choice

Which of the following is not a common audit procedure used to search for contingent liabilities?

• A)Examine letters of credit.
• B)Examine payroll reports.
• C)Review internal revenue agent reports.
• D)Analyze legal expense.

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Definitions:

Deliberate Deception

Intentional conduct designed to mislead or deceive someone, often to gain an advantage or to avoid an obligation.

Substantial Evidence

Evidence that is adequate to support a conclusion or justify a decision, often used in legal and regulatory contexts to indicate a reasonable level of proof.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often referred to as the "I-knew-it-all-along" phenomenon.

Self-fulfilling Prophesy

A prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior.