When Performing an Audit, a CPA Will Most Likely Be

question 4

Multiple Choice

When performing an audit, a CPA will most likely be considered negligent when the CPA fails to

• A) Detect all of a client's fraudulent activities.
• B) Include a negligence disclaimer in the client engagement letter.
• C) Warn a client of known internal control weaknesses.
• D) Warn a client's customers of embezzlement by the client's employees.

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Definitions:

Higher Prices

An economic condition signifying an increase in the cost of goods and services in the market.

Bartering Online

A system that facilitates the exchange of goods and services between parties without the use of money, conducted over the internet.

Surplus Products

Items that exceed the demand, often ending up in inventory without being sold, possibly due to overproduction or miscalculated market needs.

Intermediary

An entity or individual that acts as a middleman between two parties in a transaction or process, facilitating interaction, communication, or the exchange of goods and services.