The Responsibilities Principle Under Generally Accepted Auditing Standards Does Not

question 46

Multiple Choice

The responsibilities principle under generally accepted auditing standards does not include which of the following?

• A)Competence and capabilities.
• B)Independent attitude.
• C)Due care.
• D)Planning and supervision.

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Definitions:

Chronic Deficits

entail persistent and extended periods where expenses exceed revenue, leading to sustained budget shortfalls.

Aggregate Demand

Aggregate demand represents the total demand for goods and services in an economy at a given overall price level and in a given time period.

Annually Balanced Budget

A financial plan where government's revenues are equal to its expenditures within a one-year period, resulting in no deficit.

Economic Stability

The condition of an economy characterized by steady growth, low inflation, and low unemployment, indicating overall health.