Reference in a Principal Auditor's Report to the Fact That

question 816

Multiple Choice

Reference in a principal auditor's report to the fact that part of the audit was performed by another auditor most likely would be an indication of the:

• A) Divided responsibility between the auditors who conducted the audits of the components of the overall financial statements.
• B) Lack of materiality of the portion of the financial statements audited by the other auditor.
• C) Principal auditor's recognition of the other auditor's competence, reputation, and professional certification.
• D) Different opinions the auditors are expressing on the components of the financial statements that each audited.

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Definitions:

Cognitive Psychologist

A professional who studies mental processes such as perception, thought, memory, and reasoning, to understand how people process and store information.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method or decision.

Betrayed

The feeling or state of being deceived, let down, or violated trust by someone previously considered a confidant or ally.

Prototype

An original model or form of something that serves as a typical example or basis for making subsequent versions or for categorization.