While auditing other business processes, an auditor may identify information about contingent liabilities. What specific audit procedures relating to other business processes could uncover these liabilities?
What will be an ideal response?
• Reading the minutes of the board of directors and committees of the board and stockholders.
• Reviewing contracts, loan agreements, leases, and correspondence from government agencies.
• Reviewing income tax liability, tax returns, and IRS agents' reports.
• Confirming or otherwise documenting guarantees and letters of credit obtained from financial institutions or other lending agencies.
• Inspecting other documents for possible guarantees
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In assessing possible new customers, a distributor desires that a new customer have a customer lifetime value of at least $10,000. Assuming an 8% discount rate, average annual sales of $65,000, and a customer expected lifetime of 10 years, what is the minimum profit margin needed to assure a lifetime value of at least $10,000?
a. 10% b. 11% c. 12% d. 13%
Which of the following investments is clearly preferred to the others for an investor who is not
holding a well-diversified portfolio? Investment k ? A 18% 20% B 20% 20% C 20% 22% A) Investment A B) Investment B C) Investment C D) Cannot be determined without information regarding the risk-free rate of return.
Employers are vicariously liable for harassment when:
a. a hostile environment is created by a top official b. harassment by a supervisor results in a tangible employment action c. a supervisor creates a hostile environment and the employer does not have a sexual harassment policy or reporting procedure d. all of the above e. none of the above
Markov analysis is a ________ technique
Fill in the blank with correct word.