Day 11 Flashcards
1
Q
What phrases would NOT require the auditor to request further information from a client’s lawyer?
A
When the lawyer states that the liability is:
- Immaterial or (“nominal”)
- Improbable or (“without merit”)
- “Successful defense likely”
2
Q
An observed deviation rate that exceeds the auditors expected deviation rate is an example of what?
A
A deficiency in the operations of controls
