Madison Is in the Process of Gathering Evidence to Support

question 9

Multiple Choice

Madison is in the process of gathering evidence to support the audit opinion on Jefferson & Adams, Inc. She's a new staff accountant and wants to make sure she exercises the appropriate level of professional skepticism. Madison asks for your advice as the senior on the audit. How best might you guide her as to the skepticism issues?

• A) Accept management's representation unless they fail to provide adequate supporting documentation
• B) Always review the evidence you gather to assess persuasiveness
• C) Approach the audit assuming fraud does exist
• D) Keep an open mind and rely on your team in making professional judgments

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Definitions:

Democratic Processes

Procedures that are guided by principles of democracy, allowing for equitable participation and decision-making within organizations or communities.

Unions

Organizations formed by workers to protect their rights and interests through collective action and negotiation with employers.

Corporations

Legal entities that are separate from their owners, with the ability to own property, sue or be sued, and engage in contracts and business activities.

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a national trade union center in the United States representing over 12 million active and retired workers.