Test Bank For Auditing and Assurance Services: An Integrated Approach 13th Edition

Test Bank For Auditing: A Risk Based-Approach to Conducting a Quality Audit 10th Edition

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Test Bank For Auditing and Assurance Services: An Integrated Approach 13th Edition

1. easy d	While performing services for their clients, professionals have a duty to provide a level of care which is: a. free from judgment errors. b. superior. c. greater than average. d. reasonable.
2. easy b	Auditors who fail to exercise due care in their performance of professional services may be liable for: a. punitive liability. b. breach of contract. c. excess liability. d. criminal charges.
3. easy b	Which of the following may give rise to a business failure? a. An erroneous audit opinion is issued. b. Management may make ill-advised business decisions. c. Auditors may fail to uncover employee fraud. d. Poorly trained auditors may perform a company’s audit.
4. easy b	A(n) _____ failure occurs when an auditor issues an erroneous opinion as the result of an underlying failure to comply with auditing standards. a. business b. audit c. ethics d. process
5. easy a	The standard of due care to which the auditor is expected to adhere is referred to as the: a. prudent person concept. b. common law doctrine. c. due care concept. d. vigilant person concept.
6.	Auditors may be liable to their clients for:
easy		Punitive damages	Compensatory damages
a	a.	Yes	Yes
	b.	No	No
	c.	Yes	No
	d.	No	Yes

7. easy b	Under the laws of agency, partners of a CPA firm may be liable for the work of others on whom they rely. This would not include: a. employees of the CPA firm. b. employees of the audit client. c. other CPA firms engaged to do part of the audit work. d. specialists employed by the CPA firm to provide technical advice on the audit.

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