Professional Skepticism During the Financial Statement Audit Requires an Appropriate

question 48

Multiple Choice

Professional skepticism during the financial statement audit requires an appropriate state of mind: being impartial and objective and continuing to be throughout the whole audit engagement.Which of the following illustrates an appropriate state of mind?

• A)not having any ownership in the client's shares or being a debt-holder
• B)carefully assessing documents and not being the company's advocate
• C)matching documents to make sure that they are accurate and fair
• D)being aware that there could be material misstatements in the financial statements

---

Definitions:

Times of Danger

Periods or situations where there is a high risk of harm or adverse outcomes.

Even-Tempered

Having a calm and steady disposition not easily provoked to anger or emotional outbreaks.

Daily Routine

The sequence of activities regularly followed by an individual on a day-to-day basis.

Securely Attached

A term used in psychology to describe individuals who have healthy, trust-based relationships, often stemming from nurturing caregiving in early life.