Auditing · Auditing Concepts & Liabilities
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: An auditor is not held liable for negligence in detecting omissions of liabilities because liabilities are typically fewer in number and fixed in nature. Reason R: A significant portion of liability verification is integrated into the routine checking and vouching of the books of account, acting as an initial safeguard. In the light of the above statements, choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both A and R are correct and R is the correct explanation of A
- 2Both A and R are correct but R is NOT the correct explanation of A
- 3A is correct but R is not correct
- 4A is not correct but R is correct✓
Correct answer
A is not correct but R is correct
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