In the Performance of an Audit, a CPA

question 19

Multiple Choice

In the performance of an audit, a CPA:

• A) is legally liable for not detecting client fraud.
• B) must strictly follow GAAS for privately held clients.
• C) must strictly follow PCAOB auditing standards for publicly held clients.
• D) must exercise due professional care in the performance of their audit responsibilities.

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Definitions:

Seized Evidence

Items or information gathered through legal authority that are used in court to prove the facts of a case.

Unanimous Agreement

A decision or conclusion reached with the approval and consent of all parties or members involved.

Criminal Trials

Judicial proceedings where an individual is accused of committing a crime and the matter is presented before a judge or jury for determination of guilt.

Higher Standard Of Proof

The requirement to provide more substantial evidence in a legal case to meet a more stringent level of proof.