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:

Tensor Fasciae Latae

A muscle of the thigh that helps to stabilize and move the hip and knee, and is involved in the abduction and internal rotation of the hip.

Tibialis Posterior

A deep muscle of the lower leg that supports the arch of the foot and aids in plantar flexion and inversion of the foot.

Adductor Magnus

A large muscle in the thigh that helps in the movement of drawing the legs together (adduction).

Vastus Lateralis

A muscle in the thigh that is part of the quadriceps group, involved in extending the knee and stabilizing the leg.