An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against a client except the:
A) Period in which the underlying cause for legal action occurred.
B) Probability of an unfavorable outcome.
C) Jurisdiction in which the matter will be resolved.
D) Existence of a situation indicating an uncertainty as to the possible loss.

Question

Quizplus · Accepted Answer

The jurisdiction in which the matter will be resolved is not typically a factor that affects the auditor's assessment of the financial statement impact of litigation. The auditor is more concerned with the timing, probability, and potential financial impact of the litigation.

An Auditor Should Obtain Evidential Matter Relevant to All the Following