Audit Question Essay

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Audit Jeopardy question 1) The expectation gap: Often results in unwarranted lawsuits against the auditor 2) An audit failure occurs when an auditor issues an erroneous opinion because 3) Auditors may be liable to their clients if they are found guilty of Ordinary negligence: Yes Gross negligence: Yes 4) Which of the following most accurately describes constructive fraud? Extreme or unusual negligence without the intent to deceive 5) Which of the following most accurately describes fraud? Knowledge and intent to deceive 6) The legal terms for when auditor issues an audit opinion, knowing that an adequate audit was not performed is a: Constructive fraud 7) In third-party suits, which of the auditor’s defenses contends no implied or expressed contact? Lack of duty 8) In the auditing environment, failure to meet auditing standards is often: Conclusive evidence of negligence 9) The major conclusion of the 1931 Ultramares case was that: Ordinary negligence is insufficient for liability to third parties 10) If the auditor believes that the financial statement are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor: Has the responsibility of notifying financial 11) …(5) B 12) (14) D 13) (17) D 14) 20 C 15) 23 D 16) 26 D 17) 6 C 18) 2 C 19) Which of the following is not a factor that relates to opportunities to commit fraudulent financial reporting? C 20) 5 B 21) 7 D 22) 13 D 23) 1 A 24) 4C 25) Auditors may identify condition during field ….. 26) Bill and hold 27)

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