During the Course of an Audit, a CPA's Substantive Analytical

question 17

Multiple Choice

During the course of an audit, a CPA's substantive analytical procedure provides an expected interest expense that is significantly higher than the amount recorded in the entity's accounting records. This observation would most likely lead the auditor to suspect that:

• A)the entity failed to record all debt.
• B)discount on Bonds is misstated.
• C)interest income is overstated.
• D)the entity failed to record all interest expense.

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Definitions:

Systematic Desensitization

A therapeutic method used to reduce phobia or anxiety by gradually exposing the person to the feared object or context while teaching relaxation techniques.

Joseph Wolpe

A South African psychiatrist known for developing systematic desensitization, a technique used in the treatment of phobias and anxiety disorders.

Behaviour Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning, without delving deeply into past underlying conflicts.

Systematic Desensitization

A therapeutic technique used to reduce fear or anxiety by gradually exposing the patient to the feared object or context.