Which of the Following Would the Auditor Be Most Concerned

question 92

Multiple Choice

Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?

• A) Senior management emphasizes that it is very important to beat analyst estimates of earnings every reporting period.
• B) Senior management emphasizes that budgeted amounts for expenses are to be achieved for each reporting period or explained in the variance analysis report.
• C) Senior management emphasizes that job rotation is a worthwhile corporate objective.
• D) Senior management emphasizes that job evaluations are based on performance.

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Definitions:

Family Therapy

Therapy involving an entire family, with the goal of helping family members reach agreement on changes that will help heal the family unit, improve communication problems, and create more understanding and harmony within the group.

Communicating

Communicating is the process of sharing information, thoughts, or feelings between people through speaking, writing, or body language.

Systematic Desensitization

A behavior therapy that is based on classical conditioning and used to treat fears by training clients in deep muscle relaxation and then having them confront a graduated series of anxiety-producing situations (real or imagined) until they can remain relaxed while confronting even the most feared situation.

Empathy

The ability to understand and share the feelings of another, mentally placing oneself in another's situation.