Failure to Perform and Audit with Due Care Subjects Which

question 78

Multiple Choice

Failure to perform and audit with due care subjects which party to potential criminal liability?

• A) the board of directors
• B) the audit committee
• C) the auditor
• D) the internal auditor

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Definitions:

Excess Capacity

A situation where a company can produce more goods than demanded, often leading to underutilized resources or a need for strategic adjustments.

Competitive Bidding

A procurement process where suppliers submit proposals or bids to win a contract, often leading to lower prices through competition.

Fixed Costs

Costs that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Seasonal Variation

Fluctuations in business activity, sales, or other economic indicators that occur at regular intervals based on the season.