When the Auditor Considers Information That Comes to His or Her

question 29

Multiple Choice

When the auditor considers information that comes to his or her attention during the current year audit,but is related to prior year statements presented for comparative purposes,the report on the prior year is referred to as

• A)a reissued report.
• B)a shared report.
• C)an updated report.
• D)none of the above.

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Definitions:

Liquidated Debt

Debt for which there is no dispute between the parties about the fact that money is owed and the amount of money owed.

Valid Consideration

Something of value (cash, services, goods, etc.) that is exchanged between parties in a contract, making the contract legally binding.

Preexisting Duty Rule

in contract law, states that an agreement to perform an act already legally obligated to is not sufficient consideration for a new promise.

Negative Information

Adverse details or data that can impact an individual or entity's reputation or creditworthiness.