An Auditor Determines That There Is an Inherent Risk That

question 35

Multiple Choice

An auditor determines that there is an inherent risk that stock options exercised or expired remain on the organization's books.This determination is most likely tied to which of the following management assertions?

• A)Valuation.
• B)Presentation and disclosure.
• C)Rights and obligations.
• D)Existence.

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Definitions:

Healthy Sense Of Skepticism

This entails adopting a questioning attitude towards knowledge, facts, and opinions to discern the truth and avoid being misled.

Claim

Refers to the statement that the maker of the argument is seeking to show to be true or probably true.

Unwarranted Expertise

Claims of knowledge or skill in a particular area without sufficient evidence or justification.

Conflict Of Interests

A situation in which a person's or entity's vested interests could potentially influence their duties or decisions in a biased manner.