Which of the Following Is Explicitly Included as a Part

question 26

Multiple Choice

Which of the following is explicitly included as a part of the description of management's responsibility in an unmodified audit report?

• A) Management is responsible for making a judgment on which misstatements are material vs. immaterial.
• B) Management is responsible for providing auditors with all relevant evidence.
• C) Management is responsible for the maintenance of internal control.
• D) Management is responsible for listing all illegal acts with a direct effect on financial statement amounts and disclosures.

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Definitions:

Social Loafing

A situation in which people put in less effort towards achieving an objective when they are part of a team than when they operate independently.

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups. Cultural norms strongly influence social behavior and interactions.

Role Expectations

The anticipated behaviors and actions associated with a particular social position or status.

Situational Attribution

The process of attributing someone's behavior to external factors, such as the environment or circumstances, rather than to internal personality traits.