Elise-Greer, LLP Is an Affiliate of the Audit Client and Is

question 59

Multiple Choice

Elise-Greer, LLP is an affiliate of the audit client and is audited by another firm of auditors. Which of the following is most likely to be used by the auditor to obtain assurance that all guarantees of the affiliate's indebtedness have been detected?

• A) Send the standard bank confirmation request to all of the client's lender banks.
• B) Review client minutes and obtain a representation letter.
• C) Examine supporting documents for all entries in intercompany accounts.
• D) Obtain written confirmation of indebtedness from the auditor of the affiliate.

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Definitions:

Pregnant

The state of carrying a developing fetus within the female body.

Underweight

Being underweight means having a body mass index (BMI) below the normal range, which can indicate malnutrition or other health issues.

Prenatal Development

The development and growth sequence inside the womb from the time of conception until birth.

Zygote

The initial cell formed when two gamete cells are joined by means of sexual reproduction; the earliest developmental stage of the embryo.