Using Continuous-Improvement Standards Likely Causes (Or Brings About) All the Following

question 101

Multiple Choice

Using continuous-improvement standards likely causes (or brings about) all the following except:

• A) Reductions in inefficiencies.
• B) Reduced product defects.
• C) Constantly decreasing standard levels.
• D) Improved productivity.
• E) Increasing pressure on employees and managers.

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Definitions:

American Institute of Certified Public Accountants

A national professional organization for Certified Public Accountants (CPAs) in the United States, focused on setting ethical standards and auditing procedures.

GAAS

Stands for Generally Accepted Auditing Standards, which are the guidelines auditors follow to ensure their audits are conducted objectively and consistently.

Privity or Near-Privity Rule

A legal principle requiring a close, direct relationship between the parties involved in a contract for a third party to have the right to sue.

Third Party Liability

Legal responsibility that arises when a third party is held liable for damages or injury caused to another, often seen in insurance contexts.