When Performing an Audit, a CPA Will Most Likely Be

question 25

Multiple Choice

When performing an audit, a CPA will most likely be considered negligent when the CPA fails to:

• A)detect all of a client's fraudulent activities.
• B)include a negligence disclaimer in the client engagement letter.
• C)warn a client of known internal control weaknesses.
• D)warn a client's customers of embezzlement by the client's employees.

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Definitions:

Microvilli

Tiny, finger-like projections on the surface of some cells that increase their surface area for absorption.

Proximal Convoluted Tubule

The portion of the nephron in the kidney where the majority of the reabsorption of water, ions, and nutrients occurs.

Distal Convoluted Tubule

A portion of the nephron in the kidney where the final adjustments in urine composition are made, involving selective reabsorption and secretion.

Nephron Loop

A U-shaped part of the nephron in the kidney that extends from the proximal to the distal convoluted tubule, playing a crucial role in concentrating urine and conserving water.