Which of the Following Statements Represents an Audit Failure

question 48

Multiple Choice

Which of the following statements represents an audit failure?

• A) A client goes bankrupt or has serious financial difficulty.
• B) An auditor failed to conduct an audit in accordance with GAAS.
• C) An auditor cannot collect the audit fees from the client.
• D) An auditor is sued by a third party.

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Definitions:

Tire Failure

The breakdown or malfunction of tire components, leading to loss of air pressure, blowouts, or tread separation, potentially causing vehicular accidents.

Comparative Negligence

Comparative negligence is a legal doctrine that reduces the claimant's compensation by a percentage equal to their fault in causing the damage or injury.

Contributory Negligence

Contributory Negligence is a legal doctrine that may limit or prevent a plaintiff's recovery if it can be shown that their own negligence contributed to the harm suffered.

Negligence Per Se

The legal doctrine where an act is considered negligent because it violates a statute or regulation.