An Accountant Who Contractually Promises to Conduct an Audit to Detect

question 36

True/False

An accountant who contractually promises to conduct an audit to detect possible embezzlement is under a contractual obligation to provide for the client an expanded audit beyond Generally Accepted Auditing Standards.

Acknowledge the importance of presenting alternatives or solutions when conveying negative news.

Develop skills in constructing buffers and transition statements that prepare the audience for bad news without causing unnecessary distress.

Understand how cultural differences can affect the perception of apologies and negative messages.

Recognize the role of apologies in business communication and when they are appropriate to use.

---

Definitions:

Primary Market

The financial market for new securities issues, where companies sell new stocks and bonds directly to investors.

Investment Bankers

Firms specializing in the sale of new securities to the public, typically by underwriting the issue.

Initial Margin

The initial deposit required when trading securities or derivatives, serving as a guarantee against potential losses.

Market Order

A type of order to buy or sell a security immediately at the best available current price.