The Auditor Will Do Which of the Following When the Results

question 12

Multiple Choice

The auditor will do which of the following when the results of sample testing conclude that there is misstatement in excess of the tolerable misstatement?

• A)Issue a disclaimer of opinion.
• B)Throw out the sample.
• C)Propose adjustments to the client.
• D)Disclose the misstatement in the client's financial statements.

Recognize the financial statement presentation and disclosure requirements for property, plant, and equipment.

Understand and apply the double-declining-balance and straight-line methods of depreciation.

Distinguish between different types of assets: fixed assets, intangible assets, natural resources, and none of these.

Record and understand the effects of asset impairment, particularly goodwill impairment.

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Definitions:

Feelings

Emotional experiences or responses to stimuli, varying in intensity and type.

Behavioral Component

An aspect of an attitude that reflects the intention to behave in a certain way toward someone or something.

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, energy usage, and air and water pollution.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.