An Auditor That Is Requested to Provide a Report on Application

question 15

Multiple Choice

An auditor that is requested to provide a report on application of requirements of an appropriate financial reporting framework may not

• A)issue an opinion on the accounting treatment of a hypothetical transaction.
• B)discuss the requirements with the client's current auditors.
• C)limit the report to the sole use of specified parties.
• D)state that differences in facts,circumstances or assumptions might change the conclusion.

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Definitions:

Festinger and Carlsmith

Researchers known for their study on cognitive dissonance, demonstrating how experiencing inconsistency among beliefs or behaviors leads to discomfort, which individuals are motivated to reduce.

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding two or more conflicting cognitions (beliefs, attitudes) and are motivated to reduce this discomfort.

Festinger

Refers to Leon Festinger, a psychologist best known for his cognitive dissonance theory, which explores the discomfort felt by individuals when their beliefs or behaviors are inconsistent.

Cognitive Consistency

A psychological theory suggesting that individuals are motivated to maintain consistency among their cognitions, leading to changes in attitudes, beliefs, or behaviors when inconsistencies occur.