If During Risk Assessment Auditors Have Identified Risks of Material

question 104

Multiple Choice

If during risk assessment auditors have identified risks of material misstatement due to fraud, _______.

• A)they may consider not changing the timing of audit procedures
• B)they may consider changing the timing of audit procedures
• C)the auditors should confront the employee(s) in question
• D)the auditors should immediately report this to the SEC

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Definitions:

Psychoanalytic

Pertaining to psychoanalysis, the theory and therapy developed by Freud that focuses on exploring unconscious desires and conflicts.

Behavioural Theories

Theories that focus on observable behaviors, emphasizing the learning processes and the effects of the environment on behavior.

Human Behaviour

Refers to the range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and genetics.

Animal Research

Scientific studies conducted on non-human animals to understand biological, behavioral, physiological processes, often with implications for human health and behavior.