In Connection with a Proposal to Obtain a New Client

question 746

Multiple Choice

In connection with a proposal to obtain a new client, an accountant in public practice is asked to prepare a written report on the application of accounting principles to a specific transaction. The accountant's report should include a statement that:

• A) Any difference in the facts, circumstances, or assumptions presented may change the report.
• B) The engagement was performed in accordance with Statements on Standards for Consulting Services.
• C) The guidance provided is for management use only and may not be communicated to the prior or continuing auditors.
• D) Nothing came to the accountant's attention that caused the accountant to believe that the accounting principles violated GAAP.

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Definitions:

Egocentric Speech

Speech for self, a use of language typical of preschoolers that has no apparent communicative function. Piaget suggested that it serves no useful purpose, but Vygotsky argued that it is the precursor of inner speech and important for problem solving, planning, and self-control.

Cognitive Development

The process of growth and change in intellectual capabilities that occurs from infancy to adulthood.

Self-Regulation

The ability to manage one's emotions, behavior, and body functions in the face of external demands.

Cognitive Development Theories

A set of theories that describe the processes and mechanisms by which individuals perceive, think, and gain understanding of their environment as they grow and mature.