Auditing

22- When a business is unable to repay its lenders or meet the expectations of investors is called: A- Business failure. B- Audit failure. C- Audit risk. D- None of the above answers is correct one. 23- When the auditor issues an incorrect audit opinion because the auditor did not comply with auditing standards is called: A- Business failure. B- Audit failure. C- Audit risk. D- None of the above answers is correct one. 24- The auditor can be held liable for the incorrect opinion if: A- The auditor exercised due care in performing the audit. B- The auditor conducted an adequate audit. C- The auditor did not exercise due care in performing the audit. D- None of the above answers is correct one. 25- The difference between what an auditor's responsibilities are and what the user expects from the auditor is: A-Business failure. B- The expectation gap. C-Audit failure. D-Audit risk. 26- Sources of legal liability of auditors include all of the followings, except: A-Liability to clients. B-Liability to third parties under common law. C-Civil liability under federal securities laws. D- Criminal liability E- All of the above answers are correct ones. 27-The most common source of lawsuits from clients against CPAs is about: A- Negligent acts. B- Audit failure. C-Business failure. D-Audit risk