In Evaluating Whether There Is a Sufficiently Low Probability of Material

question 30

Multiple Choice

In evaluating whether there is a sufficiently low probability of material misstatement in the financial statements,the auditors accumulate:

• A)Factual misstatements in the financial statements.
• B)Judgmental misstatements in the financial statements.
• C)Factual and judgmental misstatements in the financial statements.
• D)Factual,judgmental and projected misstatements and an allowance for undetected misstatements in the financial statements.

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Definitions:

Moral Values

Values that benefit oneself and others and are worthwhile for their own sake.

Virtue

A trait or quality deemed to be morally good and thus is valued as a foundation of good moral being.

Admirable Character

Qualities or traits in a person that are considered morally good and worthy of respect.

Conscience

A source of knowledge that provides us with knowledge about what is right and wrong.