The Initial Development of Auditing Standards Was in Response to

question 4

Multiple Choice

The initial development of auditing standards was in response to

• A)a scandal involving embezzlement that was not detected during an audit engagement.
• B)auditors' concerns that all components of the financial statements were not being verified.
• C)independent inquiries of the public accounting profession made by the SEC.
• D)requests by companies for greater assurance with respect to the auditors' ability to detect financial statement misstatements.

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Definitions:

Predictive Cues

Indicators or signals that suggest the likelihood of a future event or outcome.

Purposive Behavior

Behavior that is goal-directed or undertaken with a specific intention or objective in mind.

Tolman

A cognitive psychologist known for his work on latent learning and cognitive maps in rats, challenging behaviorist theories.

Pheromones

Chemical substances released by animals (including humans) that affect the behavior or physiology of others of the same species, often involved in attraction.