The Guidelines That Accountants Must Follow in Conducting an Audit

question 63

Multiple Choice

The guidelines that accountants must follow in conducting an audit are the:

• A) generally accepted accounting principles
• B) Securities and Exchange Commission Auditing Rules and Procedures
• C) the Department of Treasury Audit Processes
• D) generally accepted auditing standards

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Definitions:

Risk

The exposure to potential financial losses or operational failures due to uncertain future events.

Value

The importance, worth, or usefulness of something, often considered in terms of monetary, cultural, or personal significance.

Evaluative Criteria

Standards or benchmarks used to assess or judge the quality, value, or suitability of something, such as a program, research study, or service.

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced, indicating the appropriate context for that behavior.