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

Question 37

Multiple Choice

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?


A) Promptly report fraud or warn of suspicion of fraud whether material or not.
B) Closely supervise and review the work of inexperienced staff.
C) Be very wary about reporting bad news to shareholders always keeping in mind it can affect the value of their investment.
D) Audit the whole of the year, not just the year-end balances.

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