Which of the Following Is an Incorrect Statement Regarding the Allocation

question 145

Multiple Choice

Which of the following is an incorrect statement regarding the allocation of the preliminary judgment about materiality to balance sheet accounts?

• A) Auditors expect certain accounts to have more misstatements than others.
• B) The allocation has virtually no effect on audit costs because the auditor must collect sufficient appropriate audit evidence.
• C) Auditors expect to identify overstatements as well as understatements in the accounts.
• D) Relative audit costs affect the allocation.

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Definitions:

Motivational Interviewing

A counseling approach that aims to enhance a person's motivation to change by exploring and resolving ambivalence.

Helper-Centered Style

A communication approach where the focus is on the perspectives and needs of the helper or therapist, which can contrast with client-centered approaches.

Directive Approach

A method in therapy or coaching where the professional actively gives instructions or guidance to shape the client's behavior or decisions.

Miller And Rollnick

Psychologists William R. Miller and Stephen Rollnick, known for developing motivational interviewing, a client-centered counseling style for eliciting behavior change.