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:

Empiricism

A philosophy that states knowledge comes primarily from sensory experience.

Behaviourism

A theory of learning which states that all behaviors are acquired through conditioning processes influenced by the environment, without the need for thoughts or feelings.

Psychoanalysis

A therapeutic technique and theory of psychology developed by Sigmund Freud, focusing on unconscious motivations and conflicts as they influence behavior.

Humanism

A psychological perspective that emphasizes the individual's inherent drive towards self-actualization and creativity.