Which of the Following Is the Most Effective Method of Identifying

question 34

Multiple Choice

Which of the following is the most effective method of identifying potential earnings management attempts?

• A)Analytical procedures.
• B)Detailed substantive procedures.
• C)Inquiry of client management and key financial personnel.
• D)Scanning accounts for unusual items.

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Definitions:

Relevant Standards

Criteria or benchmarks that are applied to evaluate the appropriateness, significance, or quality of something.

Attention

The process of selectively focusing on specific information in the environment, while ignoring other information.

Misattribution of Arousal

A psychological phenomenon where a person mistakenly attributes their emotional or physiological state to the wrong source or cause.

Excitation Transfer

A psychological process where arousal generated by one stimulus is added to the arousal from a second stimulus, intensifying the overall emotional experience.