Which of the Following Is an Audit Procedure That Auditors

question 6

Multiple Choice

Which of the following is an audit procedure that auditors most likely would perform concerning litigation, claims, and assessments?

• A)Request the client's attorney to evaluate whether the client's pending litigation claims, and assessments indicate a going concern problem.
• B)Examine the legal documents in the client's attorney's possession concerning litigation, claims, and assessments to which the attorney has devoted substantive attention.
• C)Discuss with management its policies and procedures adopted for evaluating and accounting for litigation, claims, and assessments.
• D)Confirm directly with the client's attorney that all litigation, claims, and assessments have been recorded or disclosed in the financial statements.

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Definitions:

Two Middle Scores

The median values in a data set, which are the two central numbers in an ordered sequence when the total number of observations is even.

Nominal Level

A measurement level used for categorizing data without a natural order or ranking.

Measurement Precision

The consistency and repeatability of a measurement, not necessarily accurate but consistent.

Ordinal Level

A measurement scale that categorizes data into ordered categories where the order of the values is significant, but the differences between the values are not quantitatively meaningful.