The Pacific Acceptance Case Set the Standards of Reasonable Care

question 30

Multiple Choice

The Pacific Acceptance case set the standards of reasonable care and skill required for the conduct of an audit. Which one of the following was not one of the recommendations?

• A) closely supervise and review the work of junior staff
• B) properly document procedures used
• C) duty to use reasonable care and skill
• D) promptly report material fraud

Understand and calculate the variance (V) for individual and combined random variables.

Understand and work with the concept of joint probability distributions.

Understand the concept of marginal probability distributions.

Apply the formulas for expectation and variance in practical contexts.

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Definitions:

Business Plan

A detailed document outlining the objectives of a business, the strategy and tactics planned to achieve them, and the expected financial performance over a specified period.