Generally, unless engaged to detect __________, an accountant is not a fraud detector unless the fraud is uncovered in the course of exercising reasonable care and skill

Which of the following is false regarding compliance with GAAP and GAAS? 
A. Failure to comply with GAAP and GAAS will almost certainly constitute a breach of duty.
B. Compliance with GAAP and GAAS does not automatically mean that the duty of care has been met.
C. In some circumstances, a reasonable, competent accountant would do more than that the GAAP or GAAS requires.
D. A judicial opinion may impose additional legal requirements on accountants beyond GAAP and GAAS.
E. State statutes may not impose additional legal requirements on accountants beyond GAAP and GAAS.

While failure to comply with GAAP and GAAS will almost certainly constitute a breach of duty, compliance does not automatically mean the duty of care has been met. In some circumstances, a reasonable, competent accountant would do more than GAAP or GAAS requires. Also, sometimes a state statute or judicial opinion may impose additional legal requirements on accountants beyond GAAP and GAAS.

Generally, unless engaged to detect __________, an accountant is not a fraud detector unless the fraud is uncovered in the course of exercising reasonable care and skill. 
A. Negligence
B. Misfeasance
C. Malfeasance
D. Fraud
E. Malpractice

Generally, unless engaged to detect fraud, an accountant is not a fraud detector unless the fraud is uncovered in the course of exercising reasonable care and skill.

When an audit is complete, an accountant usually issues a[n] _______________ letter stating his or her assessment of the company that was audited. 
A. Opinion
B. Auditing
C. Accounting
D. Disclaimer
E. Responsive

After completing an audit, accountants issue an opinion letter stating their assessment of the audited firm.

A financial statement is considered ____________ if no, or insubstantial, accounting procedures were used in the compilation of the document. 
A. Audited
B. Unaudited
C. Unqualified
D. Qualified
E. Generally accepted

A financial statement is considered unaudited if no, or insubstantial, accounting procedures were used in the compilation of the document. Accountants are not liable for the contents of an unaudited financial statement.

The contract entered into with a client when an accountant is hired to perform a task is referred to as a[n] ______________. 
A. Accounting contract
B. Accounting and auditing agreement
C. Engagement letter
D. Procurement letter
E. Performance letter

When hired to perform a task, the accountant enters into a contract called an engagement letter with the client that makes certain explicit and implicit promises.