The Primary Reason an Auditor Requests Letters of Inquiry Be

question 26

Multiple Choice

The primary reason an auditor requests letters of inquiry be sent to an entity's attorneys is to provide the auditor with

• A) A description and evaluation of litigation, claims, and assessments that existed at the date of the balance sheet.
• B) An expert opinion as to whether a loss is possible, probable, or remote.
• C) The opportunity to examine the documentation concerning litigation, claims, and assessments.
• D) Corroboration of the information furnished by management concerning litigation, claims, and assessments.

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Definitions:

Deliveries

Deliveries refer to the process of transporting goods from one location to another, often involving a transfer from seller to buyer or from a storage facility to the end user.

Desirable Tone

The chosen attitude or emotional expression in communication that is considered appropriate and effective for the situation.

Confident

The state of feeling certain about the truth of something or having firm trust in one’s abilities or qualities.

Positive Emphasis

A communication approach focusing on positive aspects or outcomes rather than negative ones.