If Management Is Preoccupied with Meeting Specific Accounting Numbers, This

question 92

Multiple Choice

If management is preoccupied with meeting specific accounting numbers, this is a negative factor that should influence client acceptance and retention and is associated with _______.

• A)the integrity of management
• B)competence issues within the audit firm
• C)independence issues within the audit firm
• D)special circumstances and unusual risks

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Definitions:

Expectancy Theory

A motivational theory suggesting that people are motivated to act in certain ways because they expect the outcome of their actions to achieve a desired goal.

Positive Incentives

Incentives designed to encourage and reinforce desirable behaviors by providing rewards or benefits.

Self-Interest Theory

A theory suggesting that individuals' decisions are motivated by personal gain or benefits, emphasizing the role of self-benefit in human behavior.

Hedonic

Related to or considered in terms of pleasant (or unpleasant) sensations.