The Performance Section of Principles Underlying an Audit Conducted in Accordance

question 64

Multiple Choice

The Performance section of Principles Underlying an Audit Conducted in Accordance with GAAS states that the auditor is unable to obtain absolute assurance that the financials are free of material misstatements because of inherent limitations which arise from all of the following except:

• A)the presentation of the financial statements based on GAAS.
• B)the nature of financial reporting.
• C)the nature of audit procedures.
• D)the need for the audit to be conducted within a reasonable period of time and so as to achieve a balance between benefit and cost.

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Definitions:

Hearing

The sense involving the perception of sound, enabling individuals to receive and interpret auditory information from their environment.

Bed-sharing

The practice where babies and young children sleep in the same bed as one or more parents, as opposed to sleeping in a separate space.

A-not-B Error

A cognitive error observed in infants during the sensorimotor stage, where they reach for an object at a location where it was previously found (A) rather than its new location (B).

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.