CE5 - ACC419 AUDITING THEORY Spring 2010 Class Experience#...

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ACC419 – AUDITING THEORY Spring 2010 Class Experience# 5 (Chapters 17 and 18) Name ___________________________ Section 1 or 2 1. An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against a client except the A. Period in which the underlying cause for legal action occurred B. Probability of an unfavorable outcome C. Jurisdiction in which the matter will be resolved D. Existence of a situation indicating an uncertainty as to the possible loss 2. An auditor will ordinarily examine invoices from lawyers primarily in order to A. Substantiate accruals B. Assess the legal ramifications of litigation in progress C. Estimate the dollar amount of contingent liabilities D. Identify possible unasserted litigation, claims and assessments 3. If a lawyer refuses to furnish corroborating information regarding litigation, claims and assessments, the auditor should A. Honor the confidentiality of the client-lawyer relationship B. Consider the refusal to be equivalent to a scope limitation C. Seek to obtain the corroborating information from management
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CE5 - ACC419 AUDITING THEORY Spring 2010 Class Experience#...

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