Which of These Is Not a Precaution Auditors Take to Avoid

question 46

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:

Unit Sales

The quantity of a product sold by a company in a specific period.

Target Profit

The predetermined profit that a company aims to achieve in a specific period.

Dollar Sales

The total value of sales measured in monetary terms, without adjusting for changes in volume or price.

Break-even

The point at which total costs equal total revenues, resulting in no profit or loss.