The Most Likely Explanation Why the Auditor's Examination Cannot Reasonably

question 830

Multiple Choice

The most likely explanation why the auditor's examination cannot reasonably be expected to bring all illegal acts by the client to the auditor's attention is that:

• A) Illegal acts are perpetrated by management override of internal accounting controls.
• B) Illegal acts by clients often relate to operating aspects rather than accounting aspects.
• C) The client's system of internal accounting control may be so strong that the auditor performs only minimal substantive testing.
• D) Illegal acts may be perpetrated by the only person in the client's organization with access to both assets and the accounting records.

Learn about narcissism and its characteristics.

Understand the mechanisms of reflected appraisal and how it influences self-concept.

Grasp the concepts of self-serving bias and downward comparisons and their effects on self-esteem.

Understand the influence of cultural and social factors on the conception of the self.

---

Definitions:

Market Average

A statistical measure that represents the overall movement of a specific set of stocks, indicating the general health of the stock market.

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.

Welfare Fraud

The act of illegally using or obtaining government assistance benefits by knowingly providing false information or withholding information.

Welfare Abuse

The misuse or fraudulent use of government assistance programs designed to help those in need.