Chapter 1.2, Problem V.2E

During an embezzlement trial, the plaintiff’s attorney is performing a direct examination of a witness. The attorney asks the witness, “What happened when you asked your supervisor what they knew about the incident?” The witness replies, “my supervisor said that Mr. Smith had embezzled money from the company.” Smith is the sole defendant in the case. Which of the following is the most accurate statement concerning the witness’s response? A. The witness’s response is hearsay, but it is admissible because a hearsay exception applies. B. The witness’s response is not hearsay, and it is admissible. C. The witness’s response is not hearsay, but it is inadmissible because it is unreliable. D. The witness’s response is inadmissible hearsay

Describe the quality of following types of evidence giving two examples of each form of evidence. Evidence originated by the auditor Evidence created by third parties Evidence created by the management of the client Describe the general considerations which auditors must bear in mind when evaluating audit evidence

Casey is on trial under criminal allegations that she engaged in fraudulent behavior at the company she manages. She is worried when the plaintiff alleges that it has "unambiguous proof" that Casey is guilty. Which of the following is most likely true?     If the plaintiff provides proof only up to the level of "clear and convincing," Casey can still be acquitted.   Casey need not worry about the plaintiff's evidence, since parties tend to boast about the level of proof they can establish anyway.   If the plaintiff meets a "clear and convincing" burden of proof, Casey will be found guilty.   The plaintiff will most likely prove Casey is guilty, since criminal charges only need to meet a prima facie burden of proof.