Audit failure is the failure of an audit to uncover a _______ and the expected cost of an audit failure is the ________ .

Question

Quizplus · Accepted Answer

An audit failure refers to the failure of an audit to uncover a theft, fraud, or significant misstatement in the financial statements. The expected cost of an audit failure is the amount of money lost due to the theft or misstatement, which is the subject matter of the audit. Therefore, option C, theft and expected cost of theft, is the best choice. Option A and B are incorrect because they refer to mistakes, which are not necessarily related to a failure of the audit. Option D is incorrect because it only refers to the cost of the theft, not the expected cost.

Audit Failure Is the Failure of an Audit to Uncover