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.

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Definitions:

Secure Handrails

Measures implemented to ensure handrails are firmly in place and safe to use to prevent falls and injuries.

Throw Rugs

Small, movable carpets that can be placed in various locations around a house, such as in front of a sink or by a bed.

High-fiber Foods

Foods that are rich in dietary fiber, which helps to maintain gastrointestinal health, aid in digestion, and can contribute to disease prevention efforts.

Constipation-diarrhea Cycle

A condition where an individual alternates between episodes of constipation and diarrhea, often indicating underlying digestive issues.