Audits of Financial Statements Are Designed to Obtain Reasonable Assurance

question 3

Multiple Choice

Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: $$\begin{array}{l}\begin{array} { lcc } &\text { Fraudulent Finaricial Reporting } & \text { Misappropriation of Assets }\\\text { A } & \text { Yes } & \text { Yes } \\\text { B. } & \text { Yes } & \text { No } \\\text { C. } & \text { No } & \text { Yes } \\\text { D. } & \text { No } & \text { No }\end{array}\end{array}$$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Convergent Validity

A measure of validity based on the degree to which a test correlates with other tests that it is theoretically supposed to correlate with.

Emotional Quotient

A measure of a person's ability to recognize, understand, and manage their own emotions and the emotions of others.

Reactivity

The phenomenon wherein individuals modify their behavior in response to the awareness that they are being observed.

Content Validity

The extent to which a test measures all aspects of the concept it intends to measure.