Knowledge of External Factors Affecting an Entity's Business Is Necessary

question 51

Multiple Choice

Knowledge of external factors affecting an entity's business is necessary when planning an audit. Which of the following factors would least likely be considered an external factor:

• A) interest rates.
• B) market demand.
• C) Inflation.
• D) industry-specific accounting practices.
• E) related party transactions.

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Definitions:

Dramaturgists

Researchers who approach social interactions as theatrical performances, where individuals manage impressions and roles in front of others.

Formal Commandments

Established laws or rules, often of a religious nature, that are explicitly laid out and expected to be followed by the members of a community.

Hidden Curriculum

The unspoken or implicit values, behaviors, and norms that are learned through the educational system, beyond the formal curriculum.

Expressions of Behavior

The observable actions or responses of individuals or groups, which can reflect feelings, attitudes, or societal norms.