The Most Significant Audit Issue That Came as a Result

question 14

Multiple Choice

The most significant audit issue that came as a result of the court decision in the Escott et al.v.Bar Chris Construction Corporation case in 1968 was:

• A)the court's reaffirmation that the burden of proof was on the plaintiff to prove the auditor was negligent.
• B)the affirmation of the increased auditor's responsibility when performing an S-1 review, a review of events subsequent to the balance sheet, for registration statements.
• C)the increased auditor responsibility when associated with unaudited financial statements.
• D)the court's refusal to allow the percentage-of-completion method of accounting for revenues.

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Definitions:

Oral Communications

The process of expressing information or ideas through spoken words.

Interpersonal Process

Involves communication and interactions between two or more people, which can play a critical role in both personal relationships and professional settings.

Communication

The process of sending and receiving symbols with meanings attached.

Resource Allocation

The process of distributing and managing resources (such as time, money, or personnel) among various projects or departments within an organization to maximize efficiency and achieve strategic goals.