Which of the Following Is an Accurate Statement About Professional

question 10

Multiple Choice

Which of the following is an accurate statement about professional skepticism?

• A) Professional skepticism involves a critical assessment of the evidence.
• B) Professional skepticism is easy to implement in practice.
• C) It is easy for auditors to understand that their clients may try to deceive them throughout the audit process.
• D) Professional skepticism is only necessary for the audits of public companies.

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Definitions:

Financial Accounting

The field of accounting that focuses on the preparation of financial statements to provide information to external users, such as investors and creditors.

Budgets

Financial plans that outline expected revenues and expenditures for a particular period.

Manage Resources

The process of efficiently and effectively deploying and allocating organizational resources, such as human, financial, and physical assets.

Management Accounting

A field of accounting focused on providing financial data and analysis to managers within the organization for decision-making.