Multiple Choice
A company guarantees the debt of an affiliate. Which of the following best describes the audit procedure that would make the auditor aware of the guarantee?
A) Review minutes and resolutions of the board of directors.
B) Review prior year's audit files with respect to such guarantees.
C) Review the possibility of such guarantees with the chief accountant.
D) Review the legal letter returned by the company's outside legal counsel.
Correct Answer:
Verified
Correct Answer:
Verified
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