Under Statements on Auditing Standards,which of the Following Would Be

question 26

Multiple Choice

Under Statements on Auditing Standards,which of the following would be classified as an error?

• A) Misappropriation of assets for the benefit of management.
• B) Misinterpretation by management of facts that existed when the financial statements were prepared.
• C) Preparation of records by employees to cover a fraudulent scheme.
• D) Intentional omission of the recording of a transaction to benefit a third party.

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Definitions:

Common Law

is a legal system based on custom and court rulings as opposed to statutory laws.

Civil Action

A lawsuit brought by one person or entity against another for the purpose of seeking a legal remedy or damages.

Bait and Switch

A deceptive marketing technique where customers are lured by the advertisement of a product at a low price, but are then persuaded to buy a more expensive item.