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:

Capital Stock

Capital stock represents the sum of all physical and financial assets owned by a company or country, used to facilitate production and operations.

Depreciation

The method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up.

Gross Investment

The total amount of money spent on capital goods over a specific time period without accounting for depreciation.

Disposable Income

Income that is available to households after paying taxes and receiving government transfers, used for spending or saving.