There Are Two Important Assumptions That Underly the Auditor's Use

question 133

Multiple Choice

There are two important assumptions that underly the auditor's use of external confirmations.The first is that the person returning the confirmation is independent of the company and so will provide an unbiased response.The second is that

• A)only authorized employees of the company have prepared the response.
• B)the person completing the response has carefully checked the data being confirmed.
• C)the respondent has not been coerced or bribed to respond to the confirmation.
• D)adequate controls exist at the client company to prevent unauthorized responses.

---

Definitions:

Optimal Distinctiveness Theory

A theory suggesting individuals strive to balance their need for inclusion within groups with their need to feel uniquely recognized as individuals.

Individuality

The unique set of characteristics, traits, and behaviors that distinguishes one person from another.

Connectedness

The state or condition of being related, linked, or associated with others, contributing to a sense of belonging and community.

Idiocentric Person

Refers to individuals who are primarily focused on their own interests, goals, and needs rather than those of the group they belong to.