ASA 300 Requires an Auditor to Gain a Reasonable Understanding

question 5

Multiple Choice

ASA 300 requires an auditor to gain a reasonable understanding of the client's:

• A) industry but not business.
• B) business and industry.
• C) business but not industry.
• D) specific entity structure but not its business or industry.

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Definitions:

Loudness

A perceptual attribute of sounds that determines the intensity or volume as heard by the listener.

Subliminal Stimulus

A Subliminal Stimulus is any sensory input that is below an individual's threshold for conscious perception, yet can influence thoughts, feelings, or actions.

Sensitivity To Constant Stimuli

The phenomenon whereby prolonged exposure to a constant stimulus leads to a decrease in the organism's response to that stimulus, also known as habituation.

Cognitive Theories

Theories that focus on belief systems and ways of thinking as the causes of abnormal behavior.