During the Initial Planning Phase of an Audit, a CPA

question 50

Multiple Choice

During the initial planning phase of an audit, a CPA most likely would:

• A)identify specific internal control activities that are likely to prevent fraud.
• B)evaluate the reasonableness of the client's accounting estimates.
• C)discuss the timing of the audit procedures with the client's management.
• D)inquire of the client's attorney as to any unrecorded claims.

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Definitions:

Comparative Negligence

Comparative Negligence is a legal principle that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injuries.

Contributory Negligence

A legal doctrine where if the plaintiff in a negligence claim is found to be partly at fault for the incident, they may be barred from receiving compensation.

Wrongful Death

A legal term referring to a death caused by the negligence or misconduct of another person or entity.

Creditor

An individual, institution, or organization to whom money is owed by a debtor.