Ch 5

A(n) ________ failure occurs when an auditor issues an erroneous opinion because it failed to comply with requirements of auditing standards.
In the performance of an audit, a CPA:
must exercise due professional care in the performance of their audit responsibilities.
Auditors who fail to exercise due care in their performance of professional services may be liable for:
breach of contract.
Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:
constructive fraud.
The standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:
prudent person concept.
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:
employees of the audit client.
"Absence of reasonable care that can be expected of a person in a set of circumstances" defines:
ordinary negligence.