What Reason Has Been Given to Explain the Lack of Well-Developed

question 38

Multiple Choice

What reason has been given to explain the lack of well-developed auditing professions in less developed economies?

• A) Inability to train auditors given the lack of educational systems.
• B) Since creditors and investors are not major players in these economies, there is little need for audited financial statements.
• C) Investors and creditors in these countries do not want external auditors attesting to financial statement reliability.
• D) In these cultures, financial statements are presumed to be accurate and therefore do not require independent audits.

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Definitions:

Predictability And Unpredictability

Concerns the extent to which future events are perceived as being certain or uncertain, affecting behavior and decision-making.

Nature And Nurture

The debate regarding the relative contributions of genetics (nature) and environment (nurture) to an individual's physical and behavioral characteristics.

Continuity And Stages

The debate in developmental psychology about whether development is a gradual, continuous process or a series of distinct stages.

Discrete Age-Linked Stages

The concept that development occurs in distinct, clearly defined stages that are linked to specific ages, with each stage bringing about different abilities and behaviors.