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Fleming and Company CPAs, issued an uniqualified opinion on the 203 financial statements of Walton Corporation Late in 204. Walton determined that its controller had
Fleming and Company CPAs, issued an uniqualified opinion on the 203 financial statements of Walton Corporation Late in 204. Walton determined that its controller had embezzled over $2,000,000. Fleming was unaware of the embezzlement. Walton has decided to sue Fleming to recover the $2,000,000. The suit is based upon Fleming's failure to discover the missing money while performing the audit. Which of the following is Fleming's best defense? Multiple Choice The controller was Walton's agent and as such had designed the controls which focilltated the embezzlement. Feming had no knowledge of the embezzlement. That the audit was performed in accordance with GAAS The financial statements were presented in conformity with GAAP
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