When Responding to the Auditor as a Result of the Audit

question 20

Multiple Choice

When responding to the auditor as a result of the audit client's letter of inquiry,how might the attorney limit the response?

• A)Limit the response to litigations in process.
• B)Limit the response to asserted claims.
• C)Limit the response to matters to which the attorney has given substantive attention in the form of legal consultation or representation.
• D)Limit the response to items which the attorney believes will result in loss to the client.

---

Definitions:

Positive Expected Return

A projection that an investment will yield a return above the initial outlay.

Risk-Free Arbitrage

The practice of profiting from price differences in different markets or forms without risk.

Benchmark Portfolio

Portfolio against which a manager is to be evaluated.

Well-Diversified

Refers to an investment portfolio that contains a wide variety of assets to minimize risk.