As It Relates to an Audit, Which of Following Statement

question 21

Multiple Choice

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.

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Definitions:

Consolidated

Referring to the financial statements that combine the financial information of a parent company with its subsidiaries to present as a single entity.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board for global use.

AFS-Debt Securities

Available-For-Sale Debt Securities are debt investments not classified as held-to-maturity or trading securities and can be sold before maturity.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount, leading to a downward adjustment in its valuation.