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Material misstatements or omissions in Audit Reports: Auditors are required to report internal control weaknesses to management. The auditors however have no responsibility to report internal control weaknesses in the audit report and failing to do so does not constitute a material misstatement or omission.
Required:
A. Using the library, Lexis-Nexis, or internet find the case of James G. Monroe and Penelope E. Monroe v. Gary C. Hughes:
Thomas R. Hudson and Deloitte & Touche (1994 U.S. App. LEXIS 18003). Summarize the case.
B. List the reasons why the auditing firm was not found guilty of issuing an audit report with a material misstatement or omission(Written by Gian Dang, Pratima V. Todd and Bonnie Williams)
A farmer grows wheat, which he sells to a miller for $100. The miller turns the wheat into flour, which he sells to a baker for $150. The baker turns the wheat into bread, which he sells to consumers for $180. Consumers eat the bread.
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The starting salaries for full-time jobs for recent graduates in statistics are normally distributed with a mean of $44,000 and a standard deviation of $2,900. If random samples of 25 recent graduates were selected
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