Which Is the Essence of Professional Skepticism

question 70

Multiple Choice

Which is the essence of professional skepticism?

• A)The auditor has interviewed client management for any changes in the business and industry.
• B)The auditor has performed a critical evaluation of audit evidence.
• C)The auditor has reviewed prior-year working papers and permanent file documents.
• D)The auditor has taken a tour of a client's physical facilities,noting obvious inventory obsolescence or equipment maintenance issues.

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Definitions:

Labor Underutilization

A situation where workers' skills, time, or abilities are not fully utilized in their current employment situation.

Labor Underutilization

A broader measure of unemployment that includes people who are not actively looking for work, but who would work if a job was available, and part-time workers who would prefer full-time positions.

Labor-Force Participation Rate

The rate of the labor force participants who are of working age, encompassing those in employment and those actively searching for a job.

Unemployment Rate

The proportion of the labor force that remains unemployed and is actively looking for ways to gain employment.