A CPA Issued a Standard Unqualified Audit Report on the Financial

question 11

Multiple Choice

A CPA issued a standard unqualified audit report on the financial statements of a client that the CPA knew was in the process of obtaining a loan.In a suit by the bank issuing the loan,the CPA's best defense would be that the:

• A)Audit complied with generally accepted auditing standards.
• B)Client was aware of the misstatements.
• C)Bank was not the CPA's client.
• D)Bank's identity was known to the CPA prior to completion of the audit.

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Definitions:

Competitive Advantage

The favorable position an organization seeks in order to be more successful than its competitors, often through unique resources, capabilities, or strategies.

Leader

A person who influences a group towards the achievement of a goal by guiding, directing, inspiring, and motivating members.

Short-sighted

lacking foresight or perspective; making decisions based on immediate rather than long-term outcomes.

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.