As it relates to an audit, which of following statement about professional skepticism is true?
a. Professional skepticism is not taken into consideration.
b. Professional skepticism relates only to the nature of procedures performed.
c. Professional skepticism is an attitude.
d. Professional skepticism is determined based upon the importance to a user of the financial statements.
c
You might also like to view...
The U.S. accounting standards are more principle-based than IFRS
a. True b. False Indicate whether the statement is true or false
Which of the following presumptions does not relate to the appropriateness of audit evidence?
A. The independent auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly. B. An auditor's opinion, to be economically useful, is formed within a reasonable time and based on evidence obtained at a reasonable cost. C. Evidence obtained from independent sources outside the entity is more reliable than evidence secured solely within the entity. D. The more effective the internal control system, the more assurance it provides about the accounting data and financial statements.
When using ratios to discover financial statement fraud, what is typically the most important aspect to evaluate?
a. The size of the ratio b. The direction of the ratio c. The change in the ratio d. The complexity of the ratio
What are the two common attribution errors?
A. fundamental attribution error and self-serving bias B. rudimentary element error and self-serving bias C. rudimentary element error and self-absorbed slant D. self-absorbed slant and fundamental attribution error