If No Material Differences Are Found Using Analytical Procedures, and the Auditor

question 65

Multiple Choice

If no material differences are found using analytical procedures, and the auditor concludes that misstatements are not likely to have occurred,

• A) other substantive tests may be reduced.
• B) it will be necessary to increase the tests of balances.
• C) it will not be necessary to perform tests of balances.
• D) it will be necessary to increase the tests of transactions.

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Definitions:

Illusion of Unanimity

The perception that everyone agrees when in reality, they do not, often occurring in group settings.

Stereotypes of Outgroups

Stereotypes of outgroups involve oversimplified and generalized beliefs about a group of people outside one's own, often leading to prejudice.

Self-Censorship

The act of withholding one's opinions or restraining oneself from speaking out due to fear of criticism, rejection, or punishment.

Stages in the Life of a Group

Describes the different phases a group goes through from formation to dissolution, including forming, storming, norming, performing, and adjourning.