AuditingCh5 - 5-20 a False b True c True d False e True...

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Valerie Pisano Multiple Choice 5-16 and 5-17 Problems 5-18, 5-20 and 5-24 5-16 a. 2 b. 1 c. 1 d. 2 5-17 a. 3 b. 4 c. 3 5-18 a. Non-negligent performance, contributory negligence b. Lack of duty to perform, non-negligent performance c. Yes d. Yes because an auditor can be held liable when they know relevant facts (like using a sketchy inventory counting procedure) and making poor judgments. Under this act the lack of duty defense has varying degrees of success.
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Unformatted text preview: 5-20 a. False b. True c. True d. False e. True 5-24 The best defense for the auditors is non-negligent performance. Under this defense the auditors claim they followed GAAS and the auditor is not responsible for undiscovered misstatements and that the audit was conducted properly- the CPA firm is not infallible and not a guarantor of financial statements....
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This note was uploaded on 04/13/2010 for the course BA 454 taught by Professor Capaccio during the Spring '10 term at Humboldt State University.

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