When obtaining evidence regarding litigation against an entity, the CPA would be least interested in determining
A) An estimate of when the matter will be resolved.
B) The period in which the underlying cause of the litigation occurred.
C) The probability of an unfavorable outcome.
D) An estimate of the potential loss.

Question

Quizplus · Accepted Answer

The estimate of when the matter will be resolved is not directly relevant to the evidence gathering process for litigation. The other options (B, C, and D) are important factors that can provide insight into the potential impact on the entity's financial statements.

When Obtaining Evidence Regarding Litigation Against an Entity, the CPA