A Partner and His Team Performed an Audit and Issued

question 11

Multiple Choice

A partner and his team performed an audit and issued an unqualified audit report. A year later his firm was sued when a shareholder found out the financial statements were misstated.
This situation best describes

• A) poor internal controls.
• B) human error.
• C) unethical behaviour.
• D) audit risk.

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Definitions:

Boston Massacre

An event in 1770 in which British soldiers killed five civilian men in Boston, fueling anger that contributed to the American Revolutionary War.

Indignation

A feeling of anger or annoyance provoked by what is perceived as unfair treatment.

Underlying Tension

The existing but concealed disagreements, issues, or conflict between individuals or groups that could potentially become more evident or erupt into a more pronounced conflict.

Boston Massacre

A confrontation on March 5, 1770, in which British soldiers killed five colonial civilians in Boston, exacerbating American resentment toward British rule.