I'm really starting to hate Wiley. The same question is asked in two separate test banks with two correct answers. Can anyone give me some guidance?
A lawyer's response to an auditor's inquiry concerning litigation, claims, and assessments may be limited to matters that are considered individually or collectively material to the client's financial statements. Which parties should reach an understanding on the limits of materiality for this purpose?
A. The auditor and the client's management.
B. The client's audit committee and the lawyer.
C. The client's management and the lawyer.
D. The lawyer and the auditor.
In the individual lesson it says answer A is correct: “The client and the auditor should reach an understanding about materiality. This understanding is then communicated to the attorney who will limit his/her response accordingly.”
In the quiz builder section it says answer D is correct: “The requirement is to identify which parties should reach an understanding on the limits of materiality for purposes of a lawyer's response to an auditor's inquiry concerning litigation, claims, and assessments. Answer (d) is correct because AUâ€C 501 states that a lawyer's response to an inquiry may be limited to material items, provided the lawyer and the auditor have reached an understanding on the limits of materiality for this purpose. Answer (a) is incorrect because it includes the client's management. Answer (b) is incorrect because it includes the client's audit committee and omits the auditor. Answer (c) is incorrect because it includes the client's management and omits the auditor.”
Same. exact. question.
BEC (2/27) 85
CMA Part 1 (10/14) 440
CMA Part 2 (5/15) 420
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