Auditing Standards Require the Auditor to Communicate All Management Frauds

question 150

Multiple Choice

Auditing standards require the auditor to communicate all management frauds and illegal acts to the audit committee

• A) only if the act is immaterial.
• B) only if the act is material.
• C) only if the act is highly material.
• D) regardless of materiality.

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Definitions:

Strange Situation

A procedure developed by Mary Ainsworth in the 1970s to observe attachment relationships between a caregiver and child by introducing a series of separations and reunions.

Interaction

A reciprocal action or influence between two or more entities, objects, or individuals.

Reunion

The act of coming together again after being separated, often referring to gatherings of family, friends, or colleagues.

Ambivalent/Resistant Attachment

A form of insecure attachment where children are overly dependent on caregivers and show difficulty in separating from them.