Question 7 What are the three (3) categories of assessing potential losses related to contingent liabilities?...

Question 7

What are the three (3) categories of assessing potential losses related to contingent liabilities?

I.	Material, immaterial, clearly trivial.
II.	Litigation, claims and assessments.
III.	Probable, remote and reasonably possible.
IV.	Certain, probable and possible.

Question 8

Auditors need to take special care to review significant judgmental estimates included in the financial statements because they are subject to management bias and fraud. Ultimately the auditor is responsible of providing reasonable assurance that the estimates are:

A.	Reasonable, presented in accordance with GAAP, and adequately disclosed.
B.	Necessary, comparative with prior periods and presented in accordance with GAAP.
C.	Adequately disclosed and supportable.
D.	Presented in accordance with GAAP.

Expert Solution

ekkarill92 answered 1 year ago

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