Significant Findings Are to Be Documented by the Auditor,including Actions

question 74

Multiple Choice

Significant findings are to be documented by the auditor,including actions taken to address them and the basis for the final conclusion reached.Findings that might be significant include

• A)accounting for complex or unusual assertions or accounting predictions
• B)results of audit procedures indicating that the financial statements or disclosure are not misstated or the need for an auditor to revise his previous assessment of the risk of misstatement
• C)circumstances that made it relatively easy for the auditor to apply auditing procedures
• D)findings that could result in modifications to the auditor's report
• E)adjustments that the auditor has proposed to the financial statements
• F)both A and C
• G)both B and D
• H)Both D and E

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Definitions:

Classical Conditioning

A psychological process through which associations between a previously neutral stimulus and a naturally occurring stimulus are learned, leading to a learned response.

Premack Principle

A principle of reinforcement which states that a more probable behavior can reinforce a less probable behavior.

Law of Effect

A psychological principle stating that behaviors followed by satisfying consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.

Cognitive Model

A theoretical approach that explains psychological phenomena by emphasizing mental processes, including perception, memory, and thought.