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:

Automating Processes

The use of technology to perform tasks without human intervention, increasing efficiency and reducing errors.

Customer Service

The assistance and advice provided by a company to those people who buy or use its products or services.

High-Wage Country

A country characterized by high average wages for its workers compared to the global average, often due to strong economies, advanced technologies, and high standards of living.

Feminine Culture

Cultural values that emphasize traits traditionally associated with femininity, such as cooperation, caring, and nurturing.