The Primary Reason an Auditor Asks That Enquiry Letters Be

question 44

Multiple Choice

The primary reason an auditor asks that enquiry letters be sent to a client's lawyers is to provide the auditor with ________.

• A)the probable outcome of asserted claims and pending or threatened litigation
• B)corroboration of the information furnished by management about litigation,claims,and assessments
• C)the lawyer's opinion of the client's historical experiences in recent similar litigation
• D)a description and evaluation of litigation,claims,and assessments that existed at the balance sheet date

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Definitions:

Negative Stereotypes

Oversimplified and unfavorable beliefs about a particular group of people, often leading to prejudice and discrimination.

Stereotypes

are generalized beliefs about a particular group of people, attributing specific characteristics to all members of the group regardless of individual differences.

Prejudice

A preconceived opinion or feeling, often negative, about a group or individual based on stereotypes rather than actual knowledge or reason.

Outgroup Members

Individuals who are perceived as not belonging to one's own group, often leading to biases and discrimination.