When Assessing the Risk of Material Misstatement, Auditors Evaluate the Reasonableness

question 36

Multiple Choice

When assessing the risk of material misstatement, auditors evaluate the reasonableness of an entity's accounting estimates. An auditor normally would be concerned about assumptions that are:

• A)susceptible to bias.
• B)consistent with prior periods.
• C)insensitive to variations.
• D)similar to industry guidelines.

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Definitions:

Personality Style

Refers to an individual's characteristic pattern of thinking, feeling, and behaving, often considered relatively stable over time.

Facets

Facets are the various sides, aspects, or dimensions of something, often used to describe different features of a personality or phenomenon.

Personality Theory

An approach in psychology that aims to study the individual's characteristic pattern of thinking, feeling, and behavior, often through various models and theories.

Personality

Personality is the combination of characteristics or qualities that form an individual's distinctive character, influencing thoughts, motivations, and behaviors.