The Auditor's Best Defense When Existing Material Misstatements in the Financial

question 75

Multiple Choice

The auditor's best defense when existing material misstatements in the financial statements are not uncovered in the audit is:

• A) the audit was conducted in accordance with auditing standards.
• B) the financial statements are the client's responsibility.
• C) the client is guilty of contributory negligence.
• D) the client is guilty of fraudulent misrepresentation.

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Definitions:

Positive Energy

A constructive and uplifting force or attitude that often leads to a favorable and happy environment.

Cash

Money in the form of coins or banknotes, especially that issued by a government.

Common Courtesies

Basic polite behaviors and gestures that are universally accepted and expected within a society.

Positive Reinforcement

A behavioral principle where the introduction of a stimulus following a desired behavior increases the likelihood of the behavior recurring.