Which of the following communications is most likely to be written before the balance-sheet date? a. A

Question:

Which of the following communications is most likely to be written before the balance-sheet date?

a. A report to the audit committee on the results of testing of internal control over cash receipts.

b. Confirmation letters to vendors confirming the amounts they owe to the client.

c. An attorney’s letter regarding contingent liabilities.

d. An engagement letter.

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a...