When Obtaining Evidence Regarding Litigation Against a Client, the Auditor

question 18

Multiple Choice

When obtaining evidence regarding litigation against a client, the auditor would be least interested in determining:

• A)an estimate of when the matter will be resolved.
• B)the period in which the underlying cause of the litigation occurred.
• C)the probability of an unfavourable outcome.
• D)an estimate of the potential loss.

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Definitions:

Formal Statement

An official, written expression of a fact, opinion, or policy, often used in legal, professional, or academic contexts.

Corruption

The abuse of entrusted power for private gain, manifesting in various forms such as bribery, embezzlement, and nepotism, negatively affecting the efficiency and fairness of public and private sectors.

Economic Espionage

The illegal and covert activity of obtaining confidential economic information or trade secrets from competitors for competitive advantage.

Kickbacks

Illegal or unethical payments made in return for favors or services in business transactions, often seen as a form of bribery.