The Text Described Seven Types of Audits Common in Accounting

question 8

Multiple Choice

The text described seven types of audits common in accounting practice. Which of the following statements about them is most true?

• A)An adverse opinion in a financial statement audit is evidence that an investigative audit is needed.
• B)Expectancy theory can be useful in many types of audits.
• C)Both A and B are true.
• D)Neither A nor B is true.

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Definitions:

Economic System

The organized way in which a country allocates resources and apportions goods and services in the national community.

Atomic Bomb

A weapon of mass destruction that releases energy through nuclear reactions, devastating the target area with explosive force and radiation.

American Public

The collective individuals, or the society, of the United States, often referenced in discussions about public opinion, culture, or national identity.

Truman

The 33rd President of the United States, Harry S. Truman, who served from 1945 to 1953, known for implementing the Marshall Plan to rebuild the economy of Western Europe, and for leading the country during the early stages of the Cold War.