Which of the following procedures most likely would assist an auditor to identify litigation claims and assessments?

Which of the following procedures most likely would assist an auditor to identify litigation claims and assessments?

Answer (A) is correct. Which of the following procedures most likely would assist an auditor to identify litigation, claims, and assessments? Read the file of correspondence from taxing authorities. In connection with the annual audit, which of the following is not a subsequent events procedure?

What or who is the primary source of information to be reported about litigation claims and assessments?

Audit Procedures 05 Since the events or conditions that should be considered in the financial accounting for and reporting of litigation, claims, and assessments are matters within the direct knowledge and, often, control of management of an entity, management is the primary source of information about such matters.

Are legal confirmations required for an audit?

Auditors will request this letter for any audit and particularly if they have a doubt that the management of the company they are auditing has litigation pending against it that they have not disclosed. Essentially, the letter seeks to confirm that the information provided by a client is accurate and complete.

What information is typically requested in a legal letter to a client’s attorney?

76. What information is typically requested in a legal letter to an entity’s attorney? A list and evaluation of any pending or threatened litigation to which the attorney has devoted substantial attention.

How do you write a power of attorney letter?

How to Write a Special Power of Attorney Letter

1. Draft a list of special powers.
2. Decide what powers are springing.
3. Pick an agent and a successor agent.
4. Note the expiration date.
5. Compile the information into one document.
6. Execute the power of attorney letter.

What does POA mean in legal terms?

A power of attorney is a legal document that allows someone else to act on your behalf.

Is a power of attorney liable for debts?

Overall, an attorney-in-fact is not liable for any debts that the principal has. Also, an attorney-in-fact will be held legally liable for any expenses or decisions made that breached the fiduciary duties.

Can a power of attorney revoke themselves?

In situations when a principal with a Durable Power of Attorney and two attorneys-in-fact is incapacitated, the courts would revoke Power of Attorney, if revocation is required. The attorney-in-fact can file the court application but cannot revoke another attorney-in-fact’s powers themselves.

What are unasserted claims?

Unasserted Claims means a claim related to exposure to manganese in welding fume against one or more Defendants but for which a lawsuit had not yet been instituted as of the date of the Resolution Agreement.

What are claims and assessments?

The term pending litigation, claims, and assessments refers to a potential near-term liability due to possible, threatened, or pending assertions, lawsuits, or monetary charges.

What is an auditor’s primary method to corroborate information on litigation claims and assessments?

An attorney’s letter is the primary method used to corroborate information on litigation, claims, and assessments.

When Should auditors generally assess a client’s ability to continue as a going concern?

Auditing standards require that the auditor evaluate whether there is a substantial doubt about a client’s ability to continue as a going concern for at least: one year beyond the balance sheet date.

Which of the following auditing procedures is ordinarily performed last?

Issuance of management letter

Which of the following audit procedures is used extensively?

Inquiry is an audit procedure that is used extensively throughout the audit and often is complementary to performing other audit procedures. Inquiries may range from formal written inquiries to informal oral inquiries. Evaluating responses to inquiries is an integral part of the inquiry process.

Which of the following auditing procedures is ordinarily performed last quizlet?

Terms in this set (109) Which of the following auditing procedures is ordinarily performed last? Reading of the minutes of the directors’ meetings.

Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

Which of the following audit procedures is best for identifying unrecorded trade accounts payable? Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payable applies to the prior period.

Which of the following documents are examples of audit evidence generated by the client?

Which of the following documents are examples of audit evidence generated by the client? Shipping documents and receiving reports. bc: Shipping documents and receiving reports are a result of the operations of the client. As goods are shipped to customers, a shipping document is prepared by the client.

When evaluating inventory controls an auditor would be least likely to?

When evaluating inventory controls, an auditor would be leastlikely to (Points : 1)inspect documents. make inquiries. observe procedures. consider policy and procedure manuals.

Which of the following procedures is most appropriate to test for completeness?

Performing cutoff procedures provides assurance that goods in transit (shipped or received) are appropriately included or excluded from inventory and this procedure is most appropriate for testing the completeness assertion.

Which of the following procedures is least likely to be performed before the balance sheet date?

Search for unrecorded liabilities. Observation of inventory. Review of internal accounting control over cash disbursements. Because a significant portion of the search for unrecorded liabilities deals with transactions recorded after year-end, it is least likely to be completed before the balance sheet date.

Which assertion has the greatest emphasis when auditing accounts payable?

The auditor’s primary concern with accounts payable is that of existence.

Which of the following procedures is the most efficient in detecting unrecorded liabilities at the balance sheet date?

C. The confirmation of accounts payable selected from the year-end trial balance of such accounts is most effective in discovering unrecorded liabilities. D. Unrecorded payables are often discovered through examining vouchers payable entered into the voucher register prior to the balance sheet date.

Which of the following procedures would best detect a liability omission by management?

Which of the following procedures would best detect a liability omission by management? Review purchase contracts and other legal documents.

Which of the following is the most effective control activity to detect vouchers?

The most effective control activity to detect vouchers that were prepared for the payment of goods that were not received is to match the purchase order, receiving report, and vendor’s invoice for each voucher in the accounts payable department.

Why do auditors generally use a sampling approach to evidence gathering?

Why do auditors generally use a sampling approach to evidence gathering? Auditors must balance the cost of the audit with the need for precision. The study of auditing focuses on learning the rules, techniques, and computations required to analyze financial statements.