Which of the Following Is Used to Obtain Evidence That

question 1

Multiple Choice

Which of the following is used to obtain evidence that the client's equipment accounts are not understated?

• A)Analyzing repairs and maintenance expense accounts.
• B)Vouching purchases of plant and equipment.
• C)Recomputing depreciation expense.
• D)Analyzing the miscellaneous revenue account.

---

Definitions:

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, where inferences about other people and situations may be drawn in an illogical fashion.

Availability Heuristic

A decision-making heuristic in which our estimates of frequency or probability of events are based on how easy it is to find examples.

Framing Effect

The influence of wording, or the context in which information is presented, on decision making.

Overconfidence

A cognitive bias where an individual’s subjective confidence in their judgments is greater than their objective accuracy.