The Judgement in the Pacific Acceptance Case Was Wide-Ranging and Covered

question 16

Multiple Choice

The judgement in the Pacific Acceptance case was wide-ranging and covered procedures that should exist in a normally competent audit.Which of the following is not accurate concerning procedures listed in the judgement?

• A)Promptly report fraud or warn of suspicion of fraud whether material or not.
• B)Closely supervise and review the work of inexperienced staff.
• C)Be very wary about reporting bad news to shareholders always keeping in mind it can affect the value of their investment.
• D)Audit the whole of the year, not just the year-end balances.

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Definitions:

Mumps-related Orchitis

Inflammation and swelling of one or both testicles as a complication of mumps infection, typically occurring in post-pubertal males.

Erectile Dysfunction

The inability to achieve or maintain an erection sufficient for satisfactory sexual performance.

Oligomenorrhea

A menstrual disorder characterized by infrequent menstrual periods.

Clomiphene Citrate

A fertility medication used to stimulate ovulation in women who have difficulty becoming pregnant due to problems with ovulation.