Under Generally Accepted Auditing Standards, Which of the Following Relates

question 32

Multiple Choice

Under generally accepted auditing standards, which of the following relates to the responsibilities principle?

• A)The initial planning of the audit engagement.
• B)The confirmation of accounts receivable.
• C)The completion of an internal control questionnaire.
• D)Maintaining professional skepticism and exercising professional judgment.

---

Definitions:

Low-margin Business

A business that operates with a small difference between the cost to produce goods or services and the selling price, resulting in low profit margins.

Adding Capacity

The process of increasing the potential output of a business to meet expected demand.

Leadership

The act of guiding or influencing a group towards achieving its goals, often involving making strategic decisions, motivating individuals, and fostering teamwork.

Authority

The power or right to give orders, make decisions, and enforce obedience, often associated with positions of leadership or governance.