When Performing an Audit, a CPA

question 60

Multiple Choice

When performing an audit, a CPA:

• A)must exercise the level of care, skill, and judgment expected of a reasonably prudent CPA under the circumstances.
• B)must strictly adhere to generally accepted accounting principles.
• C)is strictly liable for failing to discover client fraud.
• D)is not liable under any legal standard unless the CPA commits gross negligence or intentionally disregards generally accepted auditing standards.

---

Definitions:

External

refers to something situated on the outside, or beyond the internal or personal; in psychology, it often pertains to factors or influences that originate outside the individual.

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Intention

A mental state involving commitment to carrying out an action or actions in the future.

Social Loafing

The occurrence in which people put in less effort towards reaching a goal when part of a group than they do when working individually.