Under Common Law,when Performing an Audit,a CPA

question 52

Multiple Choice

Under common law,when performing an audit,a CPA:

• A)Must exercise the level of care,skill,and judgment expected of a reasonably prudent CPA under the circumstances.
• B)Must strictly adhere to generally accepted accounting principles.
• C)Is strictly liable for failures to discover client fraud.
• D)Is not liable unless the CPA commits gross negligence or intentionally disregards generally accepted auditing standards.

---

Definitions:

Anne's Apple Pies

A fictional or specific business entity known for producing or selling apple pies.

Market Share

The portion of a market controlled by a particular company or product.

Complements

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

Negative

Characterized by lack or absence, often used in contexts such as negative growth (decline) or negative feedback (criticism).