The Auditor's BEST Defence When Existing Material Misstatements in the Financial

question 23

Multiple Choice

The auditor's BEST defence when existing material misstatements in the financial statements are NOT uncovered in the audit is that the:

• A) financial statements are the client's responsibility.
• B) audit was conducted in accordance with generally accepted accounting principles.
• C) audit was conducted in accordance with Australian auditing standards.
• D) client is guilty of contributory negligence.

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Definitions:

Not Listening

The act of ignoring or failing to pay attention to information, instructions, or feedback, often leading to misunderstandings or mistakes.

Not Talking Enough

A communication issue where insufficient verbal interaction leads to misunderstandings or lack of clarity.

Bona Fide Occupational Requirement

A condition or requirement that is necessary for the proper or efficient performance of a job and can legally justify discrimination that would otherwise be prohibited.

Physical Evaluations

Assessments conducted to determine an individual's physical ability to perform specific tasks or job functions, often related to physical fitness or occupational health requirements.