Your Audit Client Is Under Intense Pressure to Meet an Earnings

question 59

Multiple Choice

Your audit client is under intense pressure to meet an earnings target. Which transaction assertion for purchases are you most concerned with?

• A) Occurrence.
• B) Completeness.
• C) Classification.
• D) Accuracy.

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Definitions:

Above-Average Effect

The tendency for individuals to overestimate their abilities or qualities, particularly in comparison to others, also known as the superiority bias.

Self-Verification

The desire and tendency of individuals to seek confirmation of their self-concept from the social environment.

Terror Management Theory

A psychological concept suggesting that humans have anxiety over their mortality, influencing their beliefs and behaviors to manage this fear.

Fear of Death

A pervasive anxiety or dread related to the contemplation or anticipation of dying or the unknown aspects of death.