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Adjustments in Your Audit of Lomar Company,you Find a Number

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Essay

Adjustments In your audit of Lomar Company,you find a number of items that you believe represent possible adjustments to the company's books.Management does not want to make any adjustments. REQUIRED: Assuming that Lomar is a public company,describe how the adjustments might impact your audit report on internal control over financial reporting.


Definitions:

Foot-In-The-Door Phenomenon

The foot-in-the-door phenomenon is a psychological tactic involving getting someone to agree to a small request to increase the chances they will agree to a larger request later.

Role Playing

A method for learning or therapeutic intervention where individuals act out roles in a controlled setting to gain insight into themselves or others.

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate personal disposition and traits when interpreting others' behavior.

Compassionate Personality

A compassionate personality is characterized by a habitual inclination towards empathy and concern for others, and a desire to help those in suffering.

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