If the Auditor Does Not Assess a Risk of Material

question 10

Multiple Choice

If the auditor does not assess a risk of material misstatement related to a potential contingent liability,

• A)he is required to contact the external counsel for the audit client and request additional information
• B)he is required to contact the internal counsel for the audit client
• C)he is not required to contact the external counsel for the audit client
• D)he is not required to contact the internal counsel for the audit client and request additional information

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Definitions:

Lower Layer

Refers to the bottom or underneath sections in a stratified structure, such as atmospheric layers, soil profiles, or bodies of water.

Atmosphere

The layer of gases surrounding a planet or other celestial body, held in place by gravity.

Earth

The third planet from the Sun, uniquely characterized by its vast oceans, breathable atmosphere, and diverse ecosystems supporting life.

Photochemical Smog

A type of air pollution created when sunlight reacts with nitrogen oxides and at least one volatile organic compound in the atmosphere.