The Auditor's Judgment Concerning the Overall Fairness of the Presentation

question 40

Multiple Choice

The auditor's judgment concerning the overall fairness of the presentation of financial position, results of operations, and cash flows is applied within the framework of:

• A)quality control.
• B)generally accepted auditing standards, which include the concept of materiality.
• C)the auditor's evaluation of the audited company's internal control.
• D)the applicable financial reporting framework (i.e., GAAP in the United States).

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Definitions:

Proactive Coping

Active measures taken in advance of a potentially stressful situation in order to prevent its occurrence or to minimize its consequences.

Emotion-focused Coping

A stress management strategy where individuals try to reduce the negative emotional responses associated with stress, rather than dealing directly with the problem itself.

Problem-focused Coping

A coping strategy aimed at addressing the root cause of stress or a problem, rather than the symptoms or emotional response to the problem.

Primary Appraisal

An initial evaluation process where an individual assesses the significance of a stressor or threatening event as irrelevant, benign-positive, or stressful.