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:

Belief Perseverance

The psychological phenomenon where individuals cling to their initial views or explanations despite the confrontation with new, contradictory information.

Social Psychology

The examination of individuals' thoughts, emotions, and actions within societal settings through scientific methods.

Belief Perseverance

The tendency for people to hold on to their beliefs even in the face of contradictory evidence.

Cognitive Stickiness

The tendency for certain beliefs or pieces of information to remain persistent in one's mind despite counterarguments or evidence to the contrary.