Which of These Is Not a Precaution Auditors Take to Avoid

question 22

Multiple Choice

Which of these is not a precaution auditors take to avoid litigation?

• A) comply fully with professional pronouncements.
• B) never issue a privity letter.
• C) maintain adequate professional indemnity cover.
• D) all of the above are precautions auditors take to avoid litigation

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Definitions:

Producer Surplus

The excess amount that producers make from selling a product over their minimum acceptable price.

Autarky

An economic system characterized by self-sufficiency, where a region or country aims to produce all it needs without engaging in international trade.

Trade

The exchange of goods or services between parties, which can be within an economy or between economies, allowing for the specialization and efficiency gains.

Volume of Trade

The total quantity of shares or contracts traded for a specific security or market during a specified period.