An Auditor Has Determined That There Is a High Risk

question 20

Multiple Choice

An auditor has determined that there is a high risk that her client has overvalued inventory.Which audit assertions would require additional testing?

• A)accuracy and existence
• B)allocation and accuracy
• C)accuracy and valuation
• D)valuation and classification

---

Definitions:

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Efficacy

The ability to produce a desired or intended result, often used in the context of therapeutic treatment's effectiveness.

Strengths-Based Approach

A method of enhancing individuals' capacities and potentials by focusing on their assets and strengths rather than weaknesses.

Coping Mechanisms

Strategies or behaviors that individuals use to manage or withstand stress, hardship, or trauma in their lives.