If During the Process of Identifying Litigation,claims,and Assessments Involving the Company

question 20

Multiple Choice

If during the process of identifying litigation,claims,and assessments involving the company that may increase the risk of material misstatement,the auditor assesses a risk of material misstatement due to a potential contingent liability,the auditor should

• A)seek direct communication with the company's internal legal counsel
• B)seek direct communication with the company's external legal counsel
• C)seek direct communication with the company's management
• D)seek direct communication with the company's board of directors

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Definitions:

Extremely Low Scores

Results that are significantly below the average range in assessments or evaluations.

Bar Graph

A graphical representation of data using bars of different lengths or heights to compare values across categories.

Standard Deviation

A computed measure of how much scores vary around the mean score.

Scale Values

Refers to methods or systems used to quantify and compare different levels of a particular variable or attribute.