The Auditor Is Responsible for Determining If the Ending Balances

question 33

True/False

The auditor is responsible for determining if the ending balances in the balance sheet accounts are prepared in accordance with the applicable financial reporting framework.

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Definitions:

Standard of Care

The degree of attentiveness, caution, and prudence that a reasonable person should exercise in a given situation.

Unreasonable Risk

A hazard or threat that is not justifiable given the circumstances, often indicating negligence or a failure to follow best practices.

Strict Liability

A legal principle that holds an individual or entity responsible for their actions or products, without the need to prove negligence or fault.

Fault

Responsibility for wrongdoing, error, or negligence, often determining liability in legal contexts.