What Must an Auditor Do in an Audit

question 123

Multiple Choice

What must an auditor do in an audit?

• A)Consider how the economic activity is portrayed in the financial statements.
• B)Force management to make operational decisions that will improve the company's financial performance.
• C)Disregard independence in order to find the underlying truth of the evidence.
• D)Establish new criteria by which financial statements may be compared.

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Definitions:

Negligence Per Se

A legal doctrine wherein an act is considered negligent because it violates a statute or regulation.

Assumption of the Risk

A legal theory in personal injury cases where the plaintiff is considered to have voluntarily accepted a known risk associated with an activity or condition, possibly limiting the defendant's liability.

Comparative Negligence

A principle of tort law that compares the negligence of the conflicting parties and apportions damages accordingly.

Res Ipsa Loquitur

A Latin term that means "the thing speaks for itself," used in tort law to refer to cases where the negligence is inferred from the nature of the accident.