Which of the Following Matters Is Generally Included in an Auditor's

question 75

Multiple Choice

Which of the following matters is generally included in an auditor's engagement letter?

• A) Limitations of the engagement.
• B) Factors to be considered in establishing preliminary judgments about materiality.
• C) Management's liability for all illegal acts committed by its employees.
• D) The auditor's responsibility to obtain negative assurance relating to non-compliance with laws and regulations.

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Definitions:

Behaves

Refers to the manner in which an individual, group, or entity acts or conducts themselves, often observed in response to certain stimuli or in specific environments.

Infer

To deduce or conclude information from premises or evidence.

Humanistic

A psychological perspective emphasizing individual potential for growth and the importance of human values, empathy, and the pursuit of meaning.

Rogers

Refers to Carl Rogers, an influential American psychologist and among the founders of the humanistic approach to psychology, best known for creating client-centered therapy.