It Is Important for the Auditor to Consider the Competence

question 51

Multiple Choice

It is important for the auditor to consider the competence of the audit client's employees because their competence bears directly and importantly upon the:

• A) cost/benefit relationship of the system of internal control.
• B) timing of the tests to be performed.
• C) achievement of the objectives of the system of internal control.
• D) comparison of recorded accountability with assets.

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Definitions:

Pollyanna Principle

The tendency for people to remember pleasant items more accurately than unpleasant ones, reflecting an optimism bias in human memory.

Pleasant Events

Activities or experiences that are enjoyable and contribute to an individual's well-being and happiness.

Characteristics

Distinctive traits or qualities that define a person, object, or concept.

Perceiver

An individual or entity that observes, receives, and interprets information or stimuli.