An Auditor, Using the Same Degree of Due Care as Other

question 35

Multiple Choice

An auditor, using the same degree of due care as other members of the profession, fails to identify an inadequate allowance for bad debts. This occurrence is an example of

• A) Negligence.
• B) Fraud.
• C) An error in judgment.
• D) Constructive negligence.

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Definitions:

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of antipsychotic medication.

Manic Episodes

Describes periods of extremely elevated mood, energy, and unusual thought patterns, often associated with bipolar disorder.

Lobotomy

A surgical procedure that involves cutting into the prefrontal lobe of the brain, once used to treat mental disorders but now largely discredited.

Eye Socket

A bony region containing the eyeball; also known as the orbit.