The Most Significant Audit Issue That Came as a Result

question 6

Multiple Choice

The most significant audit issue that came as a result of the court decision in the Escott et al. v. BarChris Construction Corporation case in 1968 was

• A) the court's reaffirmation that the burden of proof was on the plaintiff to prove the auditor was negligent.
• B) the affirmation of an increase in the auditor's responsibility when performing a review of events subsequent to the balance sheet date (S-1 review) for registration statements.
• C) the increased auditor responsibility when associated with unaudited financial statements.
• D) the court's refusal to allow the percentage-of-completion method of accounting for revenues.

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Definitions:

Tremor

An involuntary, rhythmic muscle contraction leading to shaking movements in one or more parts of the body, often affecting the hands, arms, eyes, face, head, vocal cords, trunk, and legs.

Alcohol

A chemical compound commonly found in beverages such as beer, wine, and spirits, characterized by its intoxicating effect when consumed.

Daily Drinking

The habitual consumption of alcoholic beverages on a daily basis.

CNS Dysfunction

Impairment or disorder affecting the central nervous system, leading to various neurological symptoms or deficits.