Management Failed to Put in a System of Adequate Internal

question 73

Multiple Choice

Management failed to put in a system of adequate internal controls. The public accounting firm uncovered the weakness, but did not report it to the Board members of the company. What
Kind of liability, if any, would the auditors be exposed to?

• A) breach of contract
• B) contributory negligence
• C) both a and b
• D) no liability

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Definitions:

Divorce Rates

The statistical measure of how often divorce occurs within a population, typically expressed per 1000 marriages.

Abortion

The medical or surgical termination of a pregnancy before the fetus is capable of independent life.

Internationally

Pertains to matters that involve more than one country or are conducted between countries.

Child Free Couples

Couples who choose not to have children, either for personal, medical, or other reasons.