The Principles Established by Justice Moffitt in the Pacific Acceptance

question 10

Multiple Choice

The principles established by Justice Moffitt in the Pacific Acceptance case do not include

• A) auditors are watchdogs but not bloodhounds.
• B) auditors must properly document procedures used.
• C) auditors have a duty to use reasonable skills and care.
• D) auditors must audit the whole year.

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Definitions:

Express Authority

is explicitly granted permission or power given to an agent or representative by a principal or employer to act on their behalf.

Detailed Language

The use of precise and specific terms in communication or documentation to ensure clarity and reduce ambiguity.

Apparent Authority

A situation where a third party reasonably believes that an agent has the authority to act on behalf of a principal, even if the agent does not have such authority.

Principal

In a financial context, the principal is the initial amount of money borrowed or invested, excluding any interest or profit. In an educational setting, it refers to the head of a school.