In Most States, Contributory Negligence Is a Defense for the Auditor

question 58

True/False

In most states, contributory negligence is a defense for the auditor only when the negligence directly contributes to the auditor's failure to perform.

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Definitions:

Mail Float

The time difference between when a check is written and when it is actually cleared and funds are deducted from the payer's account.

Availability Float

The time difference between when a check is deposited in a bank account and when the funds are made available.

Miller-Orr Model

A financial model used to manage cash balances by setting upper and lower limits on cash reserves, triggering buying or selling of securities when these thresholds are crossed.

Safety Stock

Safety stock is additional inventory held by a business to prevent stockouts caused by variations in supply and demand.