Which of the Following Is an Example of Audit Failure

question 59

Multiple Choice

Which of the following is an example of audit failure?

• A) There is business failure.
• B) The auditor failed to use due care and AACSB in the conduct of the audit.
• C) The client company is insolvent.
• D) all of the above

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Definitions:

Transferable Interest

A stake or share in a property or enterprise that can be legally transferred from one party to another.

Dissolution

The process of legally dissolving a corporation or partnership, effectively bringing its existence to an end.

RUPA

Refers to the Revised Uniform Partnership Act, which is a set of laws adopted by some U.S. states to govern the formation, operation, and dissolution of partnerships.

Duty Of Loyalty

The legal obligation of individuals, such as corporate directors or employees, to act in the best interests of their company or employer.