Which of the Following Is a Defense That an Auditor

question 64

Multiple Choice

Which of the following is a defense that an auditor might use to defend himself against client lawsuits?

• A)lack of duty
• B)non-negligent connection
• C)lack of damages
• D)contributory negligence
• E)absence of causal performance
• F)both A and D
• G)both B and E
• H)both C and E

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Definitions:

Unusual Item

An event or transaction that is not expected to recur frequently or that is unusual in nature, affecting a company's financial statements.

Prior Period

Referring to a previous time frame in financial reporting or analysis.

Unusual Item

A term used in financial accounting to refer to gains or losses that are infrequent or unusual in nature, not part of the company's ordinary operations.

Accounting Method

A set of rules used to determine when and how income and expenses are reported in the financial statements.