When Assessing Whether the Financial Statements Are Auditable, the Auditor

question 74

Multiple Choice

When assessing whether the financial statements are auditable, the auditor must consider

• A) that the integrity of management and the adequacy of accounting records are the two primary factors determining auditability.
• B) that the integrity of management and the adequacy of risk management are the two primary factors determining auditability.
• C) that if all of the transaction information is available only in electronic form without a visible audit trail, the company cannot be audited.
• D) the control risk before determining if the entity is auditable.

---

Definitions:

Ainsworth, Blehar, Waters, Wall

Researchers known for their work on attachment theory, particularly the development of the Strange Situation procedure to assess infant attachment styles.

Attachment Styles

Patterns of expectations, needs, and emotions one displays in interpersonal relationships, developed in early childhood.

Psychological Entangled

Deeply involved or caught up in complex emotional or mental states, often leading to difficulties in disentanglement.

Adult Attachment Style

A classification reflecting the patterns of expectations, needs, and emotions one exhibits in interpersonal relationships, thought to be influenced by early experiences with caregivers.