State the Two Primary Types of Subsequent Events That Require

question 56

Essay

State the two primary types of subsequent events that require consideration by management and evaluation by the auditor, and give two examples of each type.

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Definitions:

Mere-Exposure Effect

A psychological phenomenon by which people tend to develop a preference for things simply because they are familiar with them.

External Attribution

The process of attributing one's own behavior or the behavior of others to external factors or situations.

Altruism

Behavior that is aimed at helping another, requires some self-sacrifice, and is not performed for personal gain.

Conformity

Changing or adopting a behavior or an attitude in an effort to be consistent with the social norms of a group or the expectations of other people.