If an Auditor Breaks a Contractual Obligation,such as Failing to Complete

question 56

Multiple Choice

If an auditor breaks a contractual obligation,such as failing to complete an audit within the time frame specified in the engagement letter,what kind of liability does the auditor face?

• A)criminal liability
• B)civil liability
• C)professional sanctions
• D)none of the above

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Definitions:

Journal Entry

A record in accounting that represents a transaction where there is at least one debit and one credit in the company's accounts.

Cash Over And Short

An account used to document discrepancies between physical cash counts and the accounting records, due to errors or theft.

Petty Cash Fund

A small amount of cash kept on hand for making immediate, minor expenses in a business.

Custodian

An entity or individual responsible for safeguarding and managing assets or securities, ensuring their safekeeping and proper administration.