An Auditor Will Ordinarily Examine Invoices from Lawyers Primarily in Order

question 48

Multiple Choice

An auditor will ordinarily examine invoices from lawyers primarily in order to

• A) substantiate accruals.
• B) assess the legal ramifications of litigation in progress.
• C) estimate the dollar amount of contingent liabilities.
• D) identify possible unasserted litigation, claims, and assessments.

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Definitions:

Objectivity

The principle of being unbiased and impartial, ensuring personal feelings or opinions do not affect the representation of facts.

Dilution

A process of decreasing the concentration of a solute in solution, typically by adding more solvent.

Increased Vigilance

The heightened state of watchfulness and alertness to potential threats or dangers.

Reproductive Success

The transfer of genetic material to subsequent generations, enabling those offspring to further transmit the same genetic information.