An Attitude That Includes a Questioning Mind,being Alert to Conditions

question 40

Multiple Choice

An attitude that includes a questioning mind,being alert to conditions that may indicate possible misstatements,and a critical assessment of audit evidence is referred to as:

• A)Reasonable assurance.
• B)Professional skepticism.
• C)Audit neutralism.
• D)Auditing mindset.

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Definitions:

Shares Outstanding

The total number of a company's shares that are currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect market value.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of ownership remains the same.

Liquidating Dividend

A return of capital to shareholders, usually during the dissolution of a company, exceeding the original investment amount.