In Cases of a Publicly Traded Company Audit in the United

question 29

Multiple Choice

In cases of a publicly traded company audit in the United States,when International Standards on Auditing (ISAs) conflict with the PCAOB,standards,which of the following is correct?

• A)The ISA is applicable.
• B)The PCAOB standard is applicable.
• C)The substance of the conflict should be analyzed,and the ISA or PCAOB treatment that seems more appropriate is applicable.
• D)Both sets of standards have equal applicability.

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Definitions:

Amnesia

A condition characterized by memory loss, which can be due to factors like injury, disease, or psychological trauma.

Spacing Effect

The psychological principle stating that learning is more effective when study sessions are spaced out over time rather than being conducted in a single marathon session.

Mood-congruent Memory

The tendency to recall experiences that are consistent with one's current mood.

Three-stage Processing Model

A theory of memory that proposes three stages through which information passes: sensory memory, short-term memory, and long-term memory.