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The Application of Professional Skepticism Consists of Two Primary Components

question 44

True/False

The application of professional skepticism consists of two primary components: a questioning mind and a critical assessment of the audit evidence obtained during the audit.


Definitions:

Negotiable Instruments

Substitutes for money that bestow unique benefits; vehicles for conveniently transferring funds or advancing credit.

Bills of Exchange Act

Legislation that regulates the creation and the use of bills of exchange, a type of negotiable instrument.

Holder in Due Course

A legal term describing someone who has obtained a negotiable instrument in good faith and for value, thus having certain protections.

Faulty Device

An apparatus or piece of equipment that has a defect or a malfunction.

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