When Responding to the Auditor as a Result of the Audit

question 48

Multiple Choice

When responding to the auditor as a result of the audit client's letter of inquiry,the attorney may limit the response to which of the following?

• A)litigations in process.
• B)asserted claims.
• C)matters to which the attorney has given substantive attention in the form of legal consultation or representation.
• D)items which the attorney believes will result in loss to the client.

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Definitions:

Acceptability

The extent to which an idea, product, or behavior is perceived as agreeable, suitable, or satisfactory by a group or individual.

Satisficers

Individuals who make decisions that suffice to meet their needs rather than optimizing the best possible outcome.

Solutions

Solutions are answers or ways to effectively deal with a problem or challenge.

Cognitive Bias

A structured manner of diverging from the norm or logical reasoning in making judgments, allowing for conclusions about others and situations to be made in a way that lacks logical coherence.