Madison Is in the Process of Gathering Evidence to Support

question 9

Multiple Choice

Madison is in the process of gathering evidence to support the audit opinion on Jefferson & Adams, Inc. She's a new staff accountant and wants to make sure she exercises the appropriate level of professional skepticism. Madison asks for your advice as the senior on the audit. How best might you guide her as to the skepticism issues?

• A) Accept management's representation unless they fail to provide adequate supporting documentation
• B) Always review the evidence you gather to assess persuasiveness
• C) Approach the audit assuming fraud does exist
• D) Keep an open mind and rely on your team in making professional judgments

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Definitions:

Article 9

A provision of the Uniform Commercial Code that governs secured transactions involving personal property.

Real Property

Land and anything permanently attached to it, such as buildings and trees, as opposed to personal property.

UCC

The Uniform Commercial Code consists of regulations governing sales and commercial activities across the United States.

Consumer Goods

Products bought for consumption by the average consumer, typically including items such as food, clothing, and household goods.