Auditors Are Most Likely to Use the Most Rigorous Audit

question 14

Multiple Choice

Auditors are most likely to use the most rigorous audit procedures to examine

• A) Routine transactions.
• B) Management assertions that are deemed to be of low risk.
• C) Only the rights and obligations assertion.
• D) Management assertions that are deemed to be of high risk.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.