Confirmations Are a Highly Regarded and Often- Used Type of Evidence

question 38

Multiple Choice

Confirmations are a highly regarded and often- used type of evidence because they:

• A) cause no inconvenience for the auditor or third party.
• B) are inexpensive.
• C) come from an independent source.
• D) all of the above

---

Definitions:

Embezzles Client Funds

Embezzling client funds refers to the act of unlawfully taking money from those one is entrusted to manage or hold, for personal use.

Joint And Several Liability

A type of liability in which a third party can choose to sue the partners separately or to sue all partners jointly in one action.

Common Liability

A legal responsibility shared among multiple parties, often in cases of negligence where each party is held responsible for a portion of the damages.

Inspect The Books

The act of examining the financial records of an organization to ensure accuracy and compliance with relevant rules and laws.