The Third General Auditing Standard Requires That Due Professional Care

question 38

Multiple Choice

The third general auditing standard requires that due professional care be exercised in the performance of the examination and the preparation of the report.Due professional care deals with what is done by the independent auditor and how well it is done.For example,due care in the matter of audit documents requires that audit documents'

• A) Format be neat and orderly and include both a permanent file and a general file.
• B) Content be sufficient to provide support for the auditor's report, including the auditor's representation as to compliance with auditing standards.
• C) Ownership is determined by the legal statutes of the state where the auditor practices.
• D) Preparation is the responsibility of assistants whose work is reviewed by seniors, managers, and partners.

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Definitions:

Asch

Refers to Solomon Asch, known for his research on conformity, specifically the experiments demonstrating the influence of group pressure on opinions.

Crutchfield Situation

A technique used in social psychology experiments to study conformity, where individuals must make judgments while being exposed to the presumed opinions of others.

Asch Situation

An experiment by Solomon Asch that demonstrated the power of conformity in groups, where individuals often agree with a consensus even if it is clearly incorrect.

Asch Experiment

A series of psychological experiments conducted by Solomon Asch studying if and how individuals yield to or defy a majority group and the effect of such influences on beliefs and opinions.