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:

Maturation Of Personality

Growth in traits consistent with being more mature and grown-up, such as higher conscientiousness, higher agreeableness, and lower neuroticism.

Neuroticism

A personality trait characterized by tendencies toward anxiety, depression, anger, and emotional instability.

Conscientiousness

A personality trait characterized by organization, dependability, discipline, and a strong sense of duty.

Agreeableness

A personality trait characterized by warmth, kindness, and a willingness to cooperate and get along with others.