When Management Has an Adequate Level of Integrity for the Auditor

question 8

Multiple Choice

When management has an adequate level of integrity for the auditor to accept the engagement but cannot be regarded as completely honest in all dealings, auditors normally

• A) reduce acceptable audit risk and increase inherent risk.
• B) reduce inherent risk and control risk.
• C) increase inherent risk and control risk.
• D) increase acceptable audit risk and reduce inherent risk.

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Definitions:

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges, and defuse conflict.

Intelligence Quotient

A measure of a person's intellectual abilities compared to the average population, expressed as a score.

Daniel Goleman

An author and psychologist known for his work on emotional intelligence, including its importance in leadership, education, and personal development.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.