When Auditing Contingent Liabilities,which of the Following Procedures Would Be

question 31

Multiple Choice

When auditing contingent liabilities,which of the following procedures would be least effective?

• A) Reading the minutes of the board of directors.
• B) Reviewing the bank confirmation letter.
• C) Examining customer confirmation replies.
• D) Examining invoices for legal services.

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Definitions:

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action.

Behaviorism

A school of psychology that seeks to define psychological research in terms of observable measures emphasizing the scientific study of behavior.

Objectivity

The quality of being unbiased, unprejudiced, and based on observable phenomena and facts.

Research Methods

Systematic procedures for collecting and analyzing data to increase understanding of a topic or issue.