The Auditing Standards Require the Auditor to Design Audit Procedures

question 52

Multiple Choice

The auditing standards require the auditor to design audit procedures and plan the audit to identify litigation,claims,and assessments involving the company that may increase the risk of material misstatement.The auditor does this by

• A)asking management and others in the company,including the in-house legal counsel about potential legal liabilities
• B)reviewing minutes of meetings of those charged with monitoring and correspondence between the company and its internal counsel
• C)reviewing the expense accounts related to legal expense
• D)reviewing tax returns
• E)investigating customer complaints
• F)both A and B
• G)both A and C
• H)both D and E

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Definitions:

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