It Is Important for the CPA to Consider the Competence

question 53

Multiple Choice

It is important for the CPA to consider the competence of the clients' personnel because their competence has a direct impact upon the

• A) cost/benefit relationship of the system of internal control.
• B) achievement of the objectives of internal control.
• C) comparison of recorded accountability with assets.
• D) timing of the tests to be performed.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory, a comprehensive psychological test designed to assess a variety of personality traits and psychopathologies.

Naturalistic Observations

A research method in which subjects are observed in their natural environment without any manipulation by the observer.

Mental Representations

Mental representations are the cognitive structures in our minds that stand in for objects, events, or concepts, allowing us to understand and interact with the world around us.

Self-efficacy

An individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.