An Audit Performed in Accordance with Generally Accepted Auditing Standards

question 9

Multiple Choice

An audit performed in accordance with generally accepted auditing standards generally should:

• A)Be expected to provide absolute assurance that noncompliance with all laws will be detected where internal control is effective.
• B)Be relied upon to disclose violations of truth in lending laws.
• C)Encompass a plan to actively search for all illegalities which relate to operating aspects.
• D)Not be relied upon to provide absolute assurance that all noncompliance with laws will be detected.

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Definitions:

Authoritative Requests

Demands or commands given by a person in a position of power, which are expected to be followed without question.

Region of Inattention

Areas or aspects that are ignored or overlooked within a certain context, especially in cognitive psychology or information processing.

Coercive Power

The ability to control others through the threat of punishment or the imposition of unpleasant conditions.

Positive Outcomes

The beneficial or desired results of an action or set of actions, often used in the context of goals and objectives.