When an Auditor Is Associated with the Preparation of Forecasts

question 14

Multiple Choice

When an auditor is associated with the preparation of forecasts, all of the following should be disclosed except the:

• A)character of the work performed by the auditor.
• B)sources of information.
• C)probability of achieving estimates.
• D)major assumptions in the preparation of the forecasts.

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Definitions:

Social Prescriptions

Norms and expectations that define appropriate behavior for individuals in various social positions and contexts.

Stable

A condition or state that is steady and unchanging, often used to describe an equilibrium in various contexts.

Situational Attribution

The explanation of someone's behavior as being caused by external factors, conditions, or situations.

Dispositional Attribution

The tendency to attribute people's behaviors to their character or innate qualities rather than to external environmental factors.