In Determining the Types of Activities,engagements and Interactions an Auditor

question 19

Multiple Choice

In determining the types of activities,engagements and interactions an auditor should have with a client,what must the CPA and the audit firm do?

• A)Follow the rules exactly as they are written.
• B)Assess all of their relationships with every client to ensure that independence is intact.
• C)Focus on client satisfaction above all other considerations.
• D)Realize that ethics are only guidelines and a matter of personal judgment.

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Definitions:

Heuristic Distortion

Cognitive shortcuts or biases that lead to a distorted perception or simplification of complex problems, often leading to errors in judgment.

Rabbit/Duck

An example of a reversible figure that can be seen as either a rabbit or a duck, illustrating the concept of perceptual ambiguity.

Mental Scan

The cognitive process of mentally reviewing or searching through stored information or visual images in the mind.