Why Do Auditors Generally Use a Sampling Approach to Evidence

question 33

Multiple Choice

Why do auditors generally use a sampling approach to evidence gathering?

• A)Auditors are experts and do not need to look at much to know whether the financial statements are correct or not.
• B)Auditors must balance the cost of the audit with the need for precision.
• C)Auditors must limit their exposure to their auditee to maintain independence.
• D)The auditor's relationship with the auditee is generally adversarial, so the auditor will not have access to all of the financial information of the company.

Compare and contrast Piaget's and Vygotsky's theories of cognitive development.

Understand the role of social interactions and cultural context in cognitive development according to Vygotsky.

Describe the concept of adolescence egocentrism, the personal fable, and the imaginary audience.

Explain scaffolding and the zone of proximal development as described by Vygotsky.

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Definitions:

Real Buying Power

The actual amount of goods and services that can be purchased with a unit of currency, taking into account inflation and other factors affecting price levels.

Short-Term Losses

Financial losses realized on the sale or exchange of assets held for a short period, typically less than one year.

Supply Chain Risk

The potential for financial, operational, and reputational losses arising from vulnerabilities and disruptions in a company's supply chain.

Inflation Risk

The risk that the value of assets or income will be eroded as inflation diminishes the value of a country’s currency.