13 - Which common law defense centers on the inherent limitations of the audit process? a- Due care defense b-...

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13 - Which common law defense centers on the inherent limitations of the audit process? a- Due care defense b- Contributory n

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Answer 1

Answer #1

13. Correct answer: a. Due care defense.

Due care means that the auditor is expected to have a reasonable degree of care during the audit process. It is not expected from the auditor to take special care while conducting an audit. Hence, due care defence creates an inherent limitation in audit process.

14. Correct answer:

a. Securities act of 1933

15. Correct answer:

c. Use engagement letters.

Audit engagement letter will include the objective and score of audit. It will clarify the responsibilities and obligation of the auditor and client during the audit.

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Answer 2

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13 - Which common law defense centers on the inherent limitations of the audit process? a- Due care defense b-...

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