When Would It Be Appropriate for an Auditor to Withdraw

question 22

Multiple Choice

When would it be appropriate for an auditor to withdraw from an engagement?

• A) In order to avoid issuing an adverse opinion
• B) When that auditor cannot observe the taking of inventory or is unable to confirm receivables
• C) When the auditor concludes that management cannot be trusted
• D) When the auditor has overbooked too much work

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Definitions:

Primary Deviance

In labeling theory, the initial act or attitude that causes one to be labeled deviant.

Self-Fulfilling Prophecy

An inaccurate statement or belief that, by altering the situation, becomes accurate; a prediction that causes itself to come true.

Conflict Theory

A sociological perspective that sees social life as a competition, and focuses on the distribution of resources, power, and inequality.

Labeling Theory

Howard Becker’s idea that deviance is a consequence of external judgments, or labels, that modify the individual’s self-concept and change the way others respond to the labeled person.