An Auditor Would Least Likely Initiate a Discussion with a Client's

question 16

Multiple Choice

An auditor would least likely initiate a discussion with a client's audit committee concerning:

• A)the methods used to account for significant unusual transactions.
• B)the maximum dollar amount of misstatements that could exist without causing the financial statements to be materially misstated.
• C)indications of fraud and illegal acts committed by a corporate officer that were discovered by the auditor.
• D)disagreements with management as to accounting principles that were resolved during the current year's audit.

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Definitions:

Trait Approach

A theory of leadership that suggests certain inherent personality traits and characteristics contribute to effective leadership.

Behavior Approach

A focus on observable behaviors and external stimuli in understanding human actions, rather than internal thoughts and feelings.

Confidence

A belief in one's abilities, qualities, and judgement.

Optimism

A mental attitude characterized by hope and confidence in the future or the success of something, often leading to a more positive outlook and resilience to challenges.