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:

Sabbatical

A period of leave granted to an employee, often a professor or researcher, to study or travel, usually for one semester or a year, while retaining their position.

Paid Time Off

An employee benefit where workers are granted a certain number of days or hours off from work, which are paid by the employer, including vacation days, holidays, personal time, and sick leave.

Compressed Work-week

A work schedule that allows an employee to work a full-time job in fewer than the traditional five days of a standard work-week.

Participative Management Practices

A management approach where employees at all levels are involved in the decision-making process, enhancing collaboration and ownership.