An Audit Client Loses a Lawsuit and the Judgment Is

question 49

Multiple Choice

An audit client loses a lawsuit and the judgment is for an amount in excess of the contingent liability the client had recorded in the audited financial statements. The auditor, using the typical degree of due care as other members of the profession, determined that the amount of contingent liability recorded by the client in the financial statements for the pending lawsuit was reasonable, given the facts at the time of the audit. This judgment by the auditor is likely to result in:

• A)sanctions by the PCAOB levied against the individual auditor as well as the accounting firm.
• B)a successful lawsuit claiming auditor negligence.
• C)a successful lawsuit claiming breach of contract.
• D)no legal action whatsoever since due care was exercised.

Understand the relationship between psychological theories and treatment approaches.

Understand the fundamental differences and approaches between traditional psychoanalysis and humanistic therapies.

Recognize the principles and practices of behavior therapy.

Identify the role and impact of psychotherapy in psychological disorders.

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Definitions:

Cognitive Tasks

Activities or exercises designed to assess or improve mental processes such as memory, reasoning, and problem-solving.

Vygotsky's Work

Refers to the theories and research of Lev Vygotsky, who focused on social interaction, cultural context, and language's role in cognitive development.

Cognitive Development

The process by which individuals perceive, think, and gain understanding of their world through the interaction and influence of genetic and learned factors.