Which of the Following Statements Is True About Visual Observation

question 230

Multiple Choice

Which of the following statements is true about visual observation during an audit engagement? 1. Visual observations should not be documented as the facts have not been substantiated. 2. Complex conditions observed should be verified prior to communicating observations to management. 3. Visual observations can be used to detect ineffective controls, idle resources, and safety hazards. 4. Visual observation can be used during both preliminary survey and fieldwork stages of the audit engagement.

• A) 1 and 2 only
• B) 3 and 4 only
• C) 1, 2, and 4 only
• D) 2, 3, and 4 only

Assess the effects of corruption on production costs and economic efficiency.

Acknowledge the impact of social overhead capital on economic growth.

Recognize the consequences of brain drain and capital flight on developing economies.

Understand the role of technology in enhancing economic efficiency.

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Definitions:

Us-Them Hostility

A psychological and social phenomenon where in-group members harbor negative attitudes and feelings towards out-group members, often leading to conflict and discrimination.

Contact Hypothesis

A theory suggesting that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Stereotype Bias

The tendency to form oversimplified and generalized views about a group of people, leading to prejudiced attitudes and behaviors.

Cultural Cause

Factors within a society's culture, such as beliefs, norms, and values, that can influence individuals' behaviors and societal outcomes.