Professional Skepticism During the Financial Statement Audit Requires an Appropriate

question 48

Multiple Choice

Professional skepticism during the financial statement audit requires an appropriate state of mind: being impartial and objective and continuing to be throughout the whole audit engagement.Which of the following illustrates an appropriate state of mind?

• A)not having any ownership in the client's shares or being a debt-holder
• B)carefully assessing documents and not being the company's advocate
• C)matching documents to make sure that they are accurate and fair
• D)being aware that there could be material misstatements in the financial statements

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Definitions:

Current Strategies

The existing plans and approaches that a business is using to achieve its objectives and overcome challenges.

Framework

An essential supporting structure of a system, concept, or text.

Scenario Analysis

A process of analyzing possible future events by considering alternative plausible outcomes.

Future Strategies

Plans and actions designed to achieve specific goals and objectives in the coming periods.