When Performing an Audit, an Auditor Would Most Likely Be

question 40

Multiple Choice

When performing an audit, an auditor would most likely be considered negligent if they failed to:

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

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Definitions:

Equal Employment Opportunity Commission

A federal agency responsible for enforcing laws against workplace discrimination.

Obiter Dictum

A remark or observation made by a judge in a legal decision that is not essential to the ruling and therefore not legally binding.

Nonobstante Veredicto

A legal judgment that overturns the verdict of a jury, also known as "judgment notwithstanding the verdict."

Substantial Evidence Test

A standard used in legal settings to determine if the evidence in support of a conclusion is adequate and meaningful.