From the List Below, Select the Procedures That an Auditor

question 16

Essay

From the list below, select the procedures that an auditor would use to test for contingent liabilities.
a. Inquire of SEC officials regarding reported violations by the entity that create claims.
b. Read the entity's contracts, loan agreements, leases, and other documents.
c. Read the entity's minutes of meetings of shareholders, directors, and committees.
d. Request a representation letter from all the entity's employees.
e. Read the legal briefs of all suits filed against the entity's competitors.
f. Request the entity's management to prepare a letter of inquiry to the entity's attorney regarding pending litigation against the entity.

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Definitions:

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner, often to minimize negative effects.

Conflict

A struggle or clash between opposing forces or parties, which can occur on a personal, group, or organizational level and may involve differing interests, values, or goals.

Role Conflict

A situation in which an individual faces competing demands or expectations from different roles or responsibilities they hold.

Incompatible Messages

Communication that contains contradictory or conflicting signals, making it difficult for the receiver to understand the intended message.