Knowledge of the Client's Business from Preliminary Analytical Procedures Can

question 112

True/False

Knowledge of the client's business from preliminary analytical procedures can help auditors identify problem areas and make broad risk assessments.

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Definitions:

Self-Serving Bias

A cognitive bias that causes individuals to attribute their successes to internal or personal factors while attributing failures to external or situational factors.

Aversive Prejudice

Subtle, often unconscious prejudice that manifests in avoidance of certain groups or individuals, without overt hostility or hatred.

Stereotypes

Oversimplified generalized ideas about a group of people that often do not reflect reality and can result in unfair assumptions.

Assumptions

Things that are accepted as true or as certain to happen, without proof.