An Auditor Reviews a Client's Accounting Policies and Procedures When

question 162

Multiple Choice

An auditor reviews a client's accounting policies and procedures when considering which of the following planning matters?

• A) Method of sampling to be used.
• B) Preliminary judgments about materiality levels.
• C) Nature of reports to be rendered.
• D) Understanding the client's operations and business.

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Definitions:

Aldefer

Clayton Aldefer developed the ERG theory, which is a model that categorizes human needs into three categories: Existence, Relatedness, and Growth.

Maslow's Hierarchy

Maslow's Hierarchy is a psychological theory proposed by Abraham Maslow, depicting a five-tier model of human needs, arranged in a hierarchy where basic physiological and safety needs must be satisfied before individuals can fulfill higher-level needs like belonging and self-actualization.

Existence

The fact or state of living or having objective reality.

Relatedness

The need to establish and maintain emotional bonds and interpersonal connections with others.