When Auditing Only a Single Financial Statement or a Specific

question 28

True/False

When auditing only a single financial statement or a specific element, account, or item of a financial statement, the auditor will have a better understanding of the entity than if the auditor audited the entity's complete set of financial statements.

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Definitions:

Respondeat Superior

A legal doctrine holding that an employer is responsible for the actions of employees performed within the course of their employment.

Subpoena Duces Tecum

Latin; a legal document that requires the recipient to bring certain written records to court to be used as evidence in a lawsuit.

Malfeasance

The performance of an act that is unlawful or wrongful by a public official or other person in power.

Res Ipsa Loquitur

A legal principle which means "the thing speaks for itself," used in tort law to suggest that the defendant's negligence is the obvious cause of the plaintiff's injury.