In Assessing Inherent Risk for Purchasing Process Assertions, the Auditor

question 59

Multiple Choice

In assessing inherent risk for purchasing process assertions, the auditor should _______.

• A)rely on the opinions formed by the internal audit function
• B)consider pervasive factors influencing the understatement or overstatement of payables and expenses.
• C)consider pervasive factors influencing the understatement or overstatement of receivables and expenses.
• D)consider pervasive factors influencing the correct statement of payables and expenses.

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Definitions:

Dogmatism

The tendency to lay down principles as incontrovertibly true, without consideration of evidence or the opinions of others.

Cooperate

The act of working or acting together for a common purpose or benefit.

Anonymity

The state of being unknown or unacknowledged in a particular context, allowing individuals to act or communicate without revealing their identity.

Greed

An intense and selfish desire for something, especially wealth, power, or food.