In Performing a Financial Statement Audit in Accordance with Government

question 93

Multiple Choice

In performing a financial statement audit in accordance with government auditing standards,an auditor is required to report on the entity's compliance with laws and regulations.This report should

• A)state that compliance with laws and regulations is the responsibility of the entity's management.
• B)describe the laws and regulations with which the entity must comply.
• C)provide an opinion on overall compliance with laws and regulations.
• D)indicate that the auditor does not possess legal skills and cannot make legal judgments.

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Definitions:

Actor-Observer Bias

The tendency to attribute one's own actions to external causes while attributing other people's behaviors to their internal characteristics.

Internal Attributions

The process of attributing the cause of a person's behavior to internal or personal factors, rather than external situational factors.

External Attributions

The process of explaining someone's behavior by referring to situational or environmental factors.

Self-Serving Bias

A common cognitive bias that causes individuals to attribute success to personal factors and failures to external factors.