An Auditor Is Reconciling the Amounts Included in the Long-Term

question 73

Multiple Choice

An auditor is reconciling the amounts included in the long-term debt footnotes to the information examined and supported in the audit files for long-term debt. Which audit objective is being satisfied?

• A) accuracy and valuation
• B) occurrence and rights and obligations
• C) completeness
• D) classification and understandability

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Definitions:

Biologically Adaptive

Traits or behaviors that enhance an individual's ability to survive and reproduce within their environment.

Group Attribution Error

The tendency to erroneously attribute the behavior or attitudes of individual members to the characteristics of the group as a whole.

Extremity Bias

A cognitive bias where individuals tend to remember and give disproportionate weight to the most extreme examples or experiences.

Law of Small Numbers

A cognitive bias that leads people to draw broad conclusions from small data sets or limited information.