The Requirement for an Attitude of Professional Skepticism Means That

question 19

Multiple Choice

The requirement for an attitude of professional skepticism means that the auditor should

• A)not be blind to evidence that suggests the documents,books,or records have been altered or are incorrect.
• B)plan and conduct the audit with an attitude of distrust in management.
• C)perform additional tests of controls to increase the probability of discovering fraud or errors.
• D)not consider management's explanation as evidence on any subject.

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Definitions:

Legislative Act

A law or statute enacted by a legislative body.

Foreign Sales Representative

An agent who distributes, represents, or sells goods on behalf of a foreign seller, usually in return for the payment of a commission.

Distributor

A merchant who purchases goods from a seller for resale in a foreign market.

GATT

The General Agreement on Tariffs and Trade, a multilateral treaty aimed at reducing trade barriers and promoting international trade through the elimination of or reduction in tariffs, quotas, and subsidies.