Harry & Joseph Rendered an Unmodified Auditor's Opinion on the Financial

question 11

Multiple Choice

Harry & Joseph rendered an unmodified auditor's opinion on the financial report of a company that sold shares in a public offering.Based on a false statement in the financial report, Harry & Joseph is being sued by an investor who purchased shares in this public offering.Which of the following represents a viable defence?

• A)The investor has not met the burden of proving fraud by Harry amp; Joseph.
• B)The false statement is immaterial in the overall context of the financial report.
• C)Detection that the statement was false occurred after the date of the auditor's report.
• D)The investor did not actually rely upon the false statement.

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Definitions:

Voters

Individuals who are eligible and participate in the election process to choose representatives or decide on public issues.

Binomial Random Variable

is a type of random variable that has only two possible outcomes (usually termed as success and failure) in a series of experiments.

Probabilities

The indication of how likely an event is to come to pass, given as a figure from 0 to 1.

Sample Proportion

The fraction or percentage of a sample that exhibits a particular attribute or characteristic.