Which One of the Following Statements Is False

question 127

Multiple Choice

Which one of the following statements is false?

• A) Confidentiality is broken when an auditor is presented with a subpoena concerning an audit client.
• B) Information that a CPA obtains from a client is generally not privileged.
• C) When a CPA firm conducts an AICPA-authorized peer review of the quality controls of another CPA firm, permission of the client is not needed to examine audit documentation.
• D) A CPA firm which observes substandard audit documentation of another firm during a peer review can initiate a complaint to the AICPA.

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Definitions:

Excel Spreadsheet

A digital worksheet or grid in Microsoft Excel, where users can organize data, perform calculations, and analyze information.

Clearing Account

An account used to temporarily hold transactions in progress or to reconcile discrepancies before the amounts are posted to the correct accounts.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the expected amount, which can indicate efficiency or procurement issues.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period, used as a benchmark to control costs.