Other Than Inquiring of Management About Policies They Have Established

question 131

True/False

Other than inquiring of management about policies they have established to prevent illegal acts and whether management knows of any laws or regulations that the company has violated, the auditor should not search for illegal acts that do not have a direct effect on the financial statements unless there is reason to believe they may exist.

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Definitions:

Overdependence

Excessive reliance on someone or something, potentially leading to a lack of autonomy.

Insecure Patterns

Behavior patterns rooted in feelings of insecurity, leading to anxiety or avoidance in personal relationships or decision-making.

Attachment

An emotional bond between individuals, which in organizational contexts may refer to the loyalty and commitment of employees to their workplace.

Preventive Stress Management

A proactive approach to identifying and reducing stressors in the workplace to improve overall well-being and productivity.