Jones, CPA, is planning the audit of Rhonda’s Company. Rhonda verbally asserts to Jones that all expenses for the year have been recorded in the accounts. Rhonda’s representation in this regarda. Is sufficient evidence for Jones to conclude that the completeness assertion is supported for expenses.b. Can enable Jones to minimize the work on the gathering of evidence to support Rhonda’s completeness assertion.c. Should be disregarded because it is not in writing.d. Is not considered a sufficient basis for Jones to conclude that all expenses have been recorded.

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Q: Which of the following statements is most likely to be included in an attorney letter?a. “Certain…

A:

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Q: Why is it important for auditors to consider the possibility of fraud by employees or management on…

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Q: Under common law, which of the following statements most accurately reflects the liability of a CPA…

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.