An Item with a "Psychic" Effect (E

question 102

True/False

An item with a "psychic" effect (e.g., where the item maintains an increasing earnings trend)is a qualitative factor that may affect the auditors decision regarding materiality.

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Definitions:

Freud

An Austrian neurologist named Sigmund Freud established the practice of psychoanalysis, which is a technique for treating mental illnesses by facilitating dialogue between a psychoanalyst and a patient.

Defense Mechanism

Psychological strategies brought into play by individuals or the ego to cope with reality and to maintain self-image by reducing anxiety arising from unacceptable thoughts or feelings.

Repression

A psychological process in which traumatic memories are buried in the unconscious.

Freud

Sigmund Freud, an Austrian neurologist who founded the discipline of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.