An Auditor, Using the Same Degree of Due Care as Other

question 27

Multiple Choice

An auditor, using the same degree of due care as other members of the profession, fails to identify an inadequate allowance for bad debts. This occurrence is an example of:

• A)negligence.
• B)fraud.
• C)an error in judgment.
• D)constructive negligence.

Calculate the degrees of freedom for a given contingency table.

Interpret the results of a chi-squared test including the test statistic and p-value.

Understand the applications and limitations of contingency tables in statistical analysis.

Determine the significance of statistical evidence in chi-squared tests.

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Definitions:

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules, standards, and procedures that companies must follow when compiling their financial statements in the United States.

Unconditional

Unconditional means not subject to any conditions or limitations; absolute.

Non-Cancellable

A contract or agreement that cannot be terminated or cancelled by either party involved.

Future Sacrifice

The expected loss or cost in the future due to present decisions or commitments.