An Auditor Knew That the Purpose of Her Audit Was

question 4

Multiple Choice

An auditor knew that the purpose of her audit was to render reasonable assurance on financial statements that were to be used for the application for a loan;the auditor did not know the identity of the bank that would eventually give the loan.Under the Restatement of Torts approach to liability,the auditor is generally liable to the bank which subsequently grants the loan for:

• A)Lack of due diligence.
• B)Lack of good faith.
• C)Gross negligence,but not ordinary negligence.
• D)Either ordinary or gross negligence.

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Definitions:

Job Satisfaction

A measure of how content an individual is with their job; it can include various factors such as work environment, pay, and daily tasks.

Level of Significance

The threshold used in statistical tests for rejecting the null hypothesis, often denoted by alpha (α), representing the probability of making a Type I error.

Gender

A range of characteristics pertaining to, and differentiating between, masculinity and femininity, often based on social, cultural, and psychological aspects.

Chi-Square Distribution

A statistical distribution used in hypothesis testing that is based on the sum of squares of standardized random variables.