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:

Emotional Expression

The process by which people display their feelings and emotions, often through body language, facial expressions, and vocal tones.

Social Referencing

Using another person’s reaction to a situation to form one’s own response.

Indiscriminate Attachment

A phase in early child development where infants show no preference for specific caregivers and seek comfort from any adult.

Contact Comfort

The emotional and physical reassurance gained through touch, especially significant in bonding processes between parents and infants.