Frontenac Construction,your Audit Client,is a Construction Company

question 46

Multiple Choice

Frontenac Construction,your audit client,is a construction company.In the initial planning phase of the audit,you identified that it has many contracts with severe non-performance clauses if any of the current constructions are not completed on the dates set in the contracts over the next three years.As the auditor,you would set the inherent risk for sales and penalties as

• A)high.
• B)moderate.
• C)low.
• D)unknown: this cannot be determined until more procedures are performed.

---

Definitions:

Self-efficacy

An individual's belief in their capability to execute behaviors necessary to produce specific performance attainments.

Standardized Tests

Tests that are administered and scored in a consistent, or "standard", manner, which are designed to measure a student's academic performance against a common set of criteria.

Self-control

the ability to regulate one’s thoughts, emotions, and behaviors, especially in challenging situations, in order to achieve long-term goals.

Willpower

The ability to resist short-term temptations in order to meet long-term goals.