Auditors Often Request That the Audit Client Send a Letter

question 45

Multiple Choice

Auditors often request that the audit client send a letter of inquiry to those attorneys who have been consulted with respect to litigation,claims,or assessments.The primary reason for this request is to provide the auditors with:

• A)An estimate of the dollar amount of the probable loss.
• B)An expert opinion as to whether a loss is possible,probable,or remote.
• C)Information concerning the progress of cases to date.
• D)Corroborative audit evidence.

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Definitions:

Endorser

An individual or entity that signs and backs a document, often a negotiable instrument, indicating their support and assurance.

Special Endorsement

An endorsement on a negotiable instrument, such as a check, specifying the person to whom or the entity to which the instrument is to be paid.

Promissory Note

A promise in writing, signed by the maker, to pay a sum certain in money to the person named therein, or bearer, at some fixed or determinable future time, or on demand.