For Contingent Liabilities, an Auditor Is Required to Review Which

question 36

Multiple Choice

For contingent liabilities, an auditor is required to review which of the following?

• A) legal expense accounts for unexpected fluctuations
• B) minutes of meetings of those charged with governance
• C) correspondence with taxation authorities
• D) all of the above

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Definitions:

Unemployment Taxes

Unemployment taxes are taxes paid by employers to fund the unemployment insurance system, providing benefits to workers who have lost their jobs.

FICA-OASDI

Federal Insurance Contributions Act - Old-Age, Survivors, and Disability Insurance; a payroll tax that funds Social Security and Medicare in the United States.

Workers' Compensation

Insurance offering medical benefits and wage replacement to employees who become injured while on the job.

Clerical Support

Administrative assistance typically involving office or paper work.