[Ven]

NINJA Question –

An understanding with the client most likely would:

A.

identify specific internal control activities that are likely to prevent fraud.

B.

evaluate the reasonableness of the client’s accounting estimates.

C.

discuss fees and billings.

D.

inquire of the client’s attorney as to whether any unrecorded claims are probable of assertion.

Please provide solution. The question is either incorrectly framed or there is more than one answer and that is not answer C. Please help.

[Anonymous]

The question refers to items that might be included in the engagement letter (understanding with client). You can google AU C210.A23.

[jeff]

I'll take a look.

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Author]

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