A common type of lawsuit against public accountants is for the failure to detect a defalcation. State

Question:

A common type of lawsuit against public accountants is for the failure to detect a defalcation. State the auditor’s responsibility for such discovery. Give authoritative support for your answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing The Art and Science of Assurance Engagements

ISBN: 978-0133098235

12th Canadian edition

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser

See More Books

Question Posted: Dec 17, 2015 06:22 AM

See More Questions

A common type of lawsuit against CPAs is for the failure to detect a fraud. State the auditor's responsibility for such discovery. Give authoritative support for your answer.
A common type of legal action against auditors is for failure to detect a defalcation. Describe the auditor's responsibility for such discovery.
Multiple Choice Questions 1. Which of the following statements regarding the incidence of fraud is incorrect? a. Fraud is estimated to costs U.S. businesses less than 1 cent of every dollar of sales....
[21] The Assembler uses a Location Counter (LC) to: a) Keep track of the location of both instructions and operands being b) Count the number of symbols on the assembly program. c) Save the Pass...
The sun radiates 3.9 X 1023 J of energy into space even second. What is the rate at which mass is lost from the sun?
Explain why the margin of error determines the accuracy with which a sample mean estimates a population mean.
The A-36 steel rod has a diameter of 50 mm and is lightly attached to the rigid supports at A and B when T 1 = 80C. If the temperature becomes T 2 = 20C and an axial force of P = 200 kN is applied to...
James has his home and personal property insured under a Homeowners 3 (special form) policy. The dwelling is insured for $120,000. The replacement cost of the home is $200,000. Indicate the extent to...
3. Write a Matlab program that computes either the area or the perimeter of a rectangle as follows: a) Ask the user to enter the length of the rectangle (L), and the width of the rectangle (W). b)...
Sedona Electronics of Arizona exports 25,000 Disc Drive Controllers (DDCs) per year to China under an agreement that covers the period 2009-2013. In China, the DDCs are sold for the RMB (Chinese...
Differentiate between criminal action and civil action.
Distinguish among the auditors potential liability to the client, liability to third parties under common law, and criminal liability. Describe one situation for each type of liability in which the...
Solve the given equations for x (0 x < 2). 3(tan x 2) = 1 + tan x
You are a U.S.-based company. In fulfillment of a long-term contract, you are expecting a payment of 500,000PLN (Polish zloty) three years from now. The annual risk-free rate of return is 3.0% in the...
Explain the nature of auto correlation Suppose that a random sample of 200 twenty-year-old men is selected from a population and their heights and weights are recorded. A regression of weight on...
Financial information for Magic Ltd. is as follows: Magic Itd. Balnce Sheet (Partial) 2015 Assets Cash Accounts receivables Inventory 2016 Land (undeveloped) Total assets Plant and equipment, net...
Determine the beam column shown below is capable of safely carrying the applied loads. Given loads were determined by using LRFD provisions and bending moment diagrams are obtained from second order...
Harrington Horticulture Co. issues 15-year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average.
Consider a Rankine cycle steam power plant with superheat having a flow rate of 5 kg/s. The temperatures and pressures at the inlet states of the four basic components are given in the table. The...
Define the essential properties of the following types of operating systems: a. Batch b. Interactive c. Time sharing d. Real time e. Network f. Parallel g. Distributed h. Clustered i. Handheld
List the six categories of transactions. For each category, describe how the completeness audit objective would apply to the transaction.
ABC Co. has about 300 accounts receivable balances from a variety of businesses, ranging in size from about $500 to $250 000. What types of confirmations would be sent? Justify your response.
Explain the impact of client business risk on revenue recognition.
According to the Hawail Wildlife Fund, North Pacific Humpback Whales migrate from the icy waters around Alaska during the fall to spend the winter in Hawaii where they mate, give birth, and nurture...
Find the limit 4 lim (x -2x32x + x 1) =? 2+1 -
Train-the-trainer manual for the training and development department within your organization or for one with which you are familiar. Your trainers will soon be responsible to train the staff about...

A common type of lawsuit against public accountants is for the failure to detect a defalcation. State

Question:

Step by Step Answer:

The auditor is responsible for conducting an audit in accordance with generally accepted a...View the full answer

Auditing The Art and Science of Assurance Engagements

Students also viewed these Auditing questions