Auditors Often Request That the Audit Client Send a Letter

question 26

Multiple Choice

Auditors often request that the audit client send a letter of inquiry to those solicitors who have been consulted with respect to litigation, claims or assessments.The primary reason for this request is to provide the auditor with:

• A)an estimate of the dollar amount of the probable loss.
• B)an expert opinion as to whether a loss is possible, probable or remote.
• C)information concerning the progress of cases to date.
• D)corroborating evidence.

---

Definitions:

Progressive Era

A period of widespread social activism and political reform across the United States, from the 1890s to the 1920s, aiming to address problems caused by industrialization and urbanization.

World War I

A global conflict that lasted from 1914 to 1918, involving many of the world's nations, including all of the great powers, eventually forming two opposing alliances: the Allies and the Central Powers.

Warren G Harding

The 29th President of the United States (1921-1923), whose term was marked by scandals such as the Teapot Dome scandal, despite his efforts to promote a "return to normalcy" after World War I.

Republican President

A President of the United States who is a member of the Republican Party, one of the two major political parties in the U.S., known for its conservative policies.