Audits of Financial Statements Are Designed to Obtain Reasonable Assurance

question 42

Multiple Choice

Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: $$\begin{array}{l}\begin{array} { c } &\text { Fraudulent Financial Reporting}&\text{ Misappropriation of Assets }\\\text { A) } & \text { Yes } & \text { Yes } \\\text { B) } & \text { Yes } & \text { No } \\\text { C) } & \text { No } & \text { Yes } \\\text { D) } & \text { No } & \text { No }\end{array}\end{array}$$

• A)Option A.
• B)Option B.
• C)Option C.
• D)Option D.

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Definitions:

Agreeableness

A personality trait that reflects a person's tendency to be compassionate, cooperative, and friendly towards others.

Belief in a Just World

The assumption that actions always yield fair and just consequences, wherein good deeds are rewarded and bad deeds are punished.

Equity

The concept or principle of fairness or justice in the way people are treated and opportunities are distributed.

Equality

The state of being equal, especially in status, rights, and opportunities.