The judgement in the Pacific Acceptance case was wide-ranging and covered procedures that should exist in a normally competent audit. Which of the following is not accurate concerning procedures listed in the judgement?

Question

Quizplus · Accepted Answer

The judgement emphasized the importance of auditors reporting fraud or suspicions of fraud, supervising and reviewing the work of inexperienced staff, and auditing the entire year rather than just the year-end balances. It did not suggest auditors should be wary of reporting bad news to shareholders due to potential impacts on investment value; instead, auditors are expected to maintain integrity and transparency in their reporting.

The Judgement in the Pacific Acceptance Case Was Wide-Ranging and Covered