Why Does the Auditor Divide the Financial Statements into Smaller

question 95

Multiple Choice

Why does the auditor divide the financial statements into smaller segments?

• A) Using the cycle approach makes the audit more manageable.
• B) Most accounts have few relationships with others and so it is more efficient to break the financial statements into smaller pieces.
• C) The cycle approach is used because auditing standards require it.
• D) All of the above are correct.

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Definitions:

Cross-cultural Differences

Variations in norms, values, practices, and customs between people from different cultural backgrounds.

Psychological Needs

Fundamental human requirements for mental well-being, including autonomy, competence, and relatedness.

Autonomous Motivation

A type of motivation that comes from within an individual, driven by personal interest, enjoyment, or inherent satisfaction in the task itself.

Relationships

The way in which two or more people or groups regard and behave toward each other.