What Reason Has Been Given to Explain the Lack of Well-Developed

question 21

Multiple Choice

What reason has been given to explain the lack of well-developed auditing professions in less-developed economies?

• A)inability to train auditors given the lack of educational systems
• B)Since investors are not major players in these economies,there is little need for audited financial statements.
• C)Investors and creditors in these countries do not want external auditors attesting to financial statement reliability.
• D)In these cultures,financial statements are presumed to be accurate and therefore do not require independent audits.

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Definitions:

Risk Factor

Anything that increases the likelihood of developing a disease or injury.

Depression

A common mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Defence Mechanism

A psychological strategy used unconsciously by individuals to protect themselves from anxiety or social sanctions and to manage emotional conflicts.

Undoing

A psychological defense mechanism where an individual attempts to 'undo' an unacceptable thought or action by acting in a manner that counterbalances or negates it.