The Requirement for an Attitude of Skepticism Means That the Auditor

question 15

Multiple Choice

The requirement for an attitude of 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:

Demonetization

The act of stripping a currency unit of its status as legal tender, usually to replace it with new notes or coins.

Political Instability

A situation where a country experiences changes in its political environment that can affect its government's ability to govern effectively.

Depreciation

A decrease in the value of one currency relative to another currency.

Economic Disaster

An economic disaster refers to a sudden and severe downturn in the economy, leading to significant financial loss, high unemployment rates, and often a decline in the standard of living.