The Dollar Amount of Some Misstatements Cannot Be Accurately Measured

question 141

Multiple Choice

The dollar amount of some misstatements cannot be accurately measured. For example, if the client were unwilling to disclose an existing lawsuit, the auditor must estimate the likely effect on

• A) net income.
• B) users of the financial statements.
• C) the auditor's exposure to lawsuits.
• D) management's future decisions.

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Definitions:

Consistent Behavior Patterns

The regular, predictable actions and responses that define an individual's behavior over time.

Personality Psychologists

Psychologists who study individual differences in characteristic patterns of thinking, feeling, and behaving.

Social Anxiety

A chronic mental health condition characterized by overwhelming anxiety and excessive self-consciousness in everyday social situations.

Trait Approach

A theory in psychology that posits personality is comprised of broad, enduring patterns of behavior, thought, and emotion.