Which of the Following Beliefs Will Narrow the Audit Expectation

question 26

Multiple Choice

Which of the following beliefs will narrow the audit expectation gap?

• A)There is no guarantee the auditor will find all material fraud, should fraud have occurred.
• B)The auditor is providing complete assurance.
• C)The auditor is guaranteeing the future viability of the entity.
• D)An unmodified audit opinion is an indicator of complete accuracy of the financial statements.

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Definitions:

Yerkes-Dodson Law

A psychological principle stating that there is an optimal level of arousal for performance on tasks—too little arousal can lead to underperformance, whereas too much can lead to errors.

Optimal Level

Refers to the most favorable or ideal state of something for its intended purpose or function.

Stimulation

The action of arousing interest, excitement, or activity in the mind or body.

Sensation-Seeker

A person with a personality trait defined by the search for experiences and feelings that are varied, novel, complex, and intense.