In the Context of an Audit of Financial Statements,substantive Procedures

question 27

Multiple Choice

In the context of an audit of financial statements,substantive procedures are audit procedures that

• A) May be eliminated under certain conditions.
• B) Are primarily designed to discover significant subsequent events.
• C) May be either tests of details of transactions, tests of details of account balances, or analytical procedures.
• D) Will increase proportionately with an increase in the auditor's reliance on internal control.

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Definitions:

Repression

In psychology, a defense mechanism where unpleasant thoughts, memories, or desires are pushed out of conscious awareness.

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.

Displacement

In psychoanalytic theory, a defense mechanism where the mind substitutes either a new aim or a new object for goals felt in their original form to be dangerous or unacceptable.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.