Most Accounting and Auditing Professionals Agree That When an Audit

question 18

Multiple Choice

Most accounting and auditing professionals agree that when an audit has failed to uncover material misstatements,and the wrong type of audit opinion is issued,the audit firm

• A)has failed to follow generally accepted auditing standards (GAAS).
• B)deserves to lose the lawsuit.
• C)should be asked to defend the quality of the audit.
• D)should not be held responsible for the financial loss suffered by others.

---

Definitions:

Resistance Point

The least favorable point at which one will accept a deal during negotiations, beyond which they prefer no agreement.

Expected Outcome

The anticipated result or consequence of an action or situation, based on predictions or prior experience.

Value

The importance, worth, or usefulness of something.

Worth

A rephrased definition of value; the measured or perceived usefulness, importance, or general merit of something or someone.