Observation Is an Important Audit Technique Where the Auditor Can

question 47

Multiple Choice

Observation is an important audit technique where the auditor can use sight,hearing,touch,and smell.Observation needs to be used together with other audit techniques because

• A)employees will often perform their procedures consistently over time.
• B)it is a high-cost technique that is rarely used by auditors.
• C)it is a point-in-time technique limited to the time of the observation.
• D)auditors may not accurately observe and interpret what is happening.

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Definitions:

Intentional Tort

A category of torts that involves harm caused on purpose by one person to another, as opposed to accidental harm.

Defenses To Negligence

Legal arguments used to counter a negligence claim, such as contributory negligence, assumption of risk, or comparative negligence.

Contributory Negligence

Contributory negligence is a legal doctrine where if the plaintiff is found to be partly at fault for the accident or damage, they may be barred from receiving any compensation from the defendant.

Dram Shop Acts

Laws that hold alcoholic beverage servers legally responsible for harm that intoxicated or underage patrons cause after being served alcohol.