In the Evidence Gathering Process,the Auditor Seeks to Determine

question 54

Multiple Choice

In the evidence gathering process,the auditor seeks to determine

• A)the existence of a condition indicating a contingent liability
• B)the location where the cause for the legal action occurred
• C)the probability of an unfavorable outcome
• D)the actual amount of the loss
• E)the person in the company responsible for the condition
• F)both A and B
• G)both A and C
• H)both D and E

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Definitions:

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's bottom line.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Dividends Paid

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.