If Auditors Consider Confirmations of Accounts Receivable to Be Ineffective

question 5

True/False

If auditors consider confirmations of accounts receivable to be ineffective evidence because response rates will be very low, they need not confirm accounts receivable.

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Definitions:

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.

Aggressive Impulses

Instinctual drives that lead individuals to act or react in a forceful or hostile manner.

Neo-Freudian

Psychologists who accepted the basic concepts of Freud's theory but modified and expanded upon them to include social and cultural aspects.

Freud's Theories

A set of psychological and psychoanalytical theories developed by Sigmund Freud that explore the functioning of the human mind, particularly the unconscious and its influence on behavior.