The auditor is required to obtain evidential matter on litigation, claims, and assessments. This information need not include the: A) existence of the condition or situation. B) period in which the underlying cause for legal action occurred. C) degree of probability of an unfavorable outcome. D) description and evaluation of the situation. E) amount or range of potential loss.

Question

Quizplus · Accepted Answer

The auditor needs to gather evidence on the existence, period, probability of outcome, and potential loss related to litigation, claims, and assessments, but not necessarily a detailed description and evaluation of the situation itself.

The Auditor Is Required to Obtain Evidential Matter On Litigation