When Choosing the Appropriate Acceptable Risk of Overreliance, the Auditor

question 54

Multiple Choice

When choosing the appropriate acceptable risk of overreliance, the auditor needs to

• A) rely on his/her professional judgment.
• B) err on the side of conservatism.
• C) consult the professional standards.
• D) follow SEC guidelines.

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Definitions:

Attitude

A mental inclination shown through the assessment of a specific entity with a level of preference or aversion.

Perceived Importance

The subjective significance or value that an individual assigns to an object, concept, or action, based on personal belief, culture, or social influence.

Competitive Advantages

The unique attributes or benefits that a company possesses, allowing it to outperform its competitors.

Cognitive Learning Technique

Involves the use of mental processes to acquire knowledge and understanding through thought, experience, and the senses, emphasizing learning strategies that foster deep understanding.