An example of an audit failure is when the
A)auditor issues an erroneous audit opinion as the result of a failure to comply with the requirements of CAS.
B)audit opinion is qualified.
C)company files for bankruptcy less than 12 months after receiving an unqualified opinion.
D)auditor issues an erroneous audit opinion as the result of an undiscovered fraud that took place in the period being audited.

Question

Quizplus · Accepted Answer

An audit failure occurs when an auditor does not comply with auditing standards, leading to an incorrect audit opinion. This is distinct from situations like bankruptcy after an unqualified opinion, which may not necessarily indicate an audit failure.

An Example of an Audit Failure Is When the