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:

Craniosynostosis

A birth defect in which one or more of the fibrous sutures in an infant's skull prematurely fuses, potentially affecting brain growth.

Hydrocephalus

A condition where there is an abnormal accumulation of cerebrospinal fluid (CSF) in the ventricles, or cavities, of the brain, which can increase pressure inside the skull and lead to brain damage.

Goiter

An enlargement of the thyroid gland, which can cause a visible swelling in the neck.

Iodine Deficiency

A lack of the mineral iodine in the body, leading to insufficient production of thyroid hormones, which can cause various health problems including goiter and cognitive impairments.