The Primary Emphasis by Auditors Is on Controls Over

question 54

Multiple Choice

The primary emphasis by auditors is on controls over:

• A) account balances.
• B) classes of transactions.
• C) both A and B, because they are equally weighted.
• D) both A and B, because they vary from client to client.

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Definitions:

Proximate Cause

The extent to which, as a matter of policy, a defendant may be held liable for the consequences of his or her actions. In the majority of states, proximate cause requires the plaintiff and the plaintiff’s damages to have been foreseeable at the time of the accident. In the minority of states, proximate cause exists if the defendant’s actions led to the plaintiff’s harm.

Policy Liability

Refers to the obligations a company or individual has under the terms of an insurance policy.

Compensatory Damages

A monetary award in a lawsuit intended to compensate the injured party for the loss or injury they have suffered.

Plaintiff Reimbursement

The process through which a plaintiff may be compensated for costs or losses incurred, often as part of the judgment in a legal case.