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Essential to Both Management and Auditors Is a Chain of Evidence

question 13

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Essential to both management and auditors is a chain of evidence in the accounting system provided by coding, cross references, and documentation connecting account balances and other summary results with original data. This chain of evidence is referred to as the:


Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method or decision.

Planning Fallacy

The tendency to underestimate the time, costs, and risks of future actions and at the same time overestimate the benefits of the same actions.

Intelligence

The ability to learn from experience, solve problems, and use knowledge to adapt to new situations.

Adapt

The process of making adjustments or changes in oneself or behavior in response to new or altered circumstances.

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