Inherent risk
a. exists because all control structures are flawed in some ways.
b. is the likelihood that material misstatements exist in the financial statements of the firm.
c. is associated with the unique characteristics of the business or industry of the client.
d. is the likelihood that the auditor will not find material misstatements.
C
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Extreme dysfunctional thinking (i.e., black and white thinking) at the team level can lead to what type of evaluations?
a. Open-minded b. Ends of spectrum c. All aspects of spectrum d. None of the above
Which of the following statements is true regarding job satisfaction?
A. It is unrelated to job performance. B. It remains constant over time. C. It is independent of objective job appraisals. D. It has both rational and emotional components. E. It is not measurable.
The adjusting entry to record the estimated bad debts in the period credit sales occur includes a debit to an:
A. expense account and a credit to a contra-asset account. B. asset account and a credit to a liability account. C. expense account and a credit to an asset account. D. expense account and a credit to a revenue account.
You know that you are on the way to peak performance when you
A) are beginning to feel some fatigue from the task. B) receive the coaching that you need to perform well. C) engage in multitasking. D) totally focus on what you are doing.