Which of the Following Violates the Generally Accepted Auditing Standard

question 5

Multiple Choice

Which of the following violates the generally accepted auditing standard indicated?

• A)Opinion: Auditors issued an adverse opinion on financial statements.
• B)Consistency: An auditor explained inconsistencies between a client's application of GAAP over the last two years.
• C)Evidence: An auditor used last year's opinion as the only evidence for the current year's opinion.
• D)All of the above violate the standards indicated.

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Definitions:

Rationalization

A defense mechanism where controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Denial

A psychological defense mechanism in which confrontation with a reality or fact is avoided by denying the existence of the problem or reality.

Psychosexual Stage

Refers to the stages of childhood development in Freudian psychology, each characterized by different modes of obtaining pleasure from the psychosexual energy.

Erogenous

Zones or areas of the body that, when stimulated, produce sexual arousal and pleasure.