Which of the Following Represents Fraud Procedures Used by Auditors

question 35

Multiple Choice

Which of the following represents fraud procedures used by auditors?

• A)The auditor must disregard complex transactions for reasons of economic substance.
• B)The auditor cannot allow the client to pressure the timing of the audit for early release of earnings.
• C)The auditor must put less emphasis on capital additions and more on payroll.
• D)The auditors must no longer use confirmations and move forward to internal verification.

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Definitions:

Convergent Thinking

Thinking that produces one correct answer; characteristic of the kind of thinking required on conventional intelligence tests.

General Intelligence

The theory that a single, general intelligence factor underlies all cognitive abilities, allowing individuals to perform a wide range of cognitive tasks.

Correct Answer

An accurate response or solution to a particular question or problem.

Mental Retardation

An outdated and insensitive term formerly used to describe individuals with below-average intellectual functioning and significant limitations in adaptive behaviors; now more commonly referred to as intellectual disability.