When Management Is Unable to Provide an Explanation for a Previously

question 158

True/False

When management is unable to provide an explanation for a previously unrecognized risk identified through the analytical procedures, the auditor must issue an adverse opinion.

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Definitions:

Sternberg

Refers to Robert Sternberg, an American psychologist best known for his theory on love and intelligence.

Concrete

Referring to tangible or specific objects and events, as opposed to abstract concepts.

Tangible Objects

Physical items that can be perceived by the sense of touch, as opposed to abstract concepts or ideas.

Abstract Concepts

Ideas that do not have a physical form, often complex and not directly observable, such as justice or freedom.