An Auditor Who Agrees to Examine a Client's Records for Fraud

question 57

True/False

An auditor who agrees to examine a client's records for fraud and then fails to detect it is not liable because a normal audit is not intended to uncover fraud.

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Definitions:

Sufficient Outside Customers

A requirement for some accounting methods where a service department or segment of a business must have enough sales to external customers to justify its existence or pricing strategy.

Container Product

A product designed to hold or contain other products, goods, or materials.

Bulk Packaging

The practice of packaging products in large containers or quantities for efficient transport and storage, typically used for wholesale.

Capacity

Maximum output of the operation of an organization.