The Auditing Standards Require the Auditor to Design Audit Procedures

question 44

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 governance and correspondence between the company and its external counsel
• C)reviewing the expense accounts related to audit expense
• D)reviewing tax returns
• E)investigating customer complaints
• F)both A and B
• G)both C and E
• H)both D and E

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Definitions:

GRIT

in psychology, passion and perseverance in the pursuit of long-term goals

Conflict

A struggle or clash between opposing forces, ideas, interests, or people.

Conciliation

The process of resolving a dispute or conflict through mutual agreement and understanding.

Interracial Contact

Refers to the direct interaction between people from different racial backgrounds, which can influence attitudes and reduce prejudice.