Which of the Following Is a True Statement Regarding Professional

question 23

Multiple Choice

Which of the following is a true statement regarding professional skepticism?

• A) Auditors reject most potential clients perceived as lacking honesty and integrity.
• B) If the auditor has past experience with a client, they can assume the client is honest.
• C) Material frauds occur in most of the audits of financial statements.
• D) Professional skepticism is required only during the planning phase.

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Definitions:

Better Performers

Individuals or groups that exhibit a higher level of skill, productivity, or achievement in comparison to others within the same context or activity.

Financial Performance

An assessment of how well an organization is using its resources to generate revenue and manage its expenses.

Customer Satisfaction

A measure of how products or services meet or surpass customer expectations, often crucial for business success.

Industrial Relations

The study and practice of managing the relationships between employers, employees, trade unions, and the government, focusing on conflict resolution and cooperation within the workplace.