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:

Microevolution

Change in the genetic makeup of a species or a small group of organisms over a brief time period, regarded as evolutionary.

Speciation

Evolution of a new species.

Mass Extinctions

Events in Earth's history where large numbers of species become extinct worldwide in a relatively short geological timeframe, drastically reducing biodiversity.

Environmental Factors

Encompasses all external elements and conditions affecting an organism's life, from climate to food availability.