Which of the Following Is the Auditor's Primary Objective When

question 68

Multiple Choice

Which of the following is the auditor's primary objective when auditing debt?

• A)Understatement of the debt obligation focusing on the completeness assertion.
• B)Proper valuation of bond premium or bond discount,including amortization valuation.
• C)Valuation of gains or losses on refinancing debt.
• D)Proper presentation and disclosure,including important restrictions contained in the debt.

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Definitions:

Greatest Good

A principle in utilitarian ethics focused on actions that result in the greatest benefit or happiness for the largest number of people.

Cognitive Moral Development

A theory proposed by Lawrence Kohlberg that suggests people progress through different stages of moral reasoning as their cognitive abilities mature.

Ethical Behavior

Conducting oneself in accordance with recognized moral principles or accepted standards of right and wrong in all professional and personal actions.

Moral Development

The process by which individuals learn and apply concepts of right and wrong, influencing their behavior and attitudes.