The Auditing Standards Presume That the Auditor Will Request Confirmation

question 71

Multiple Choice

The auditing standards presume that the auditor will request confirmation of accounts receivable balances unless

• A)the transactions in accounts receivable are immaterial
• B)the use of confirmations would be effective if the amount were significant
• C)the auditor can reduce the risk of issuing the wrong audit opinion to an acceptable low level without confirming accounts receivable
• D)the client believes that confirmations are not necessary

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Definitions:

Emotional Intelligence

The ability to identify your own and other people’s emotions accurately, express your emotions clearly, and regulate emotions in yourself and others.

Own Emotions

The personal experience and awareness of one's own feelings.

Componential Intelligence

A facet of Robert Sternberg's Triarchic Theory of Intelligence that involves analytical problem-solving abilities, including the capacity to evaluate, analyze, and solve abstract problems.

Cognitive Dissonance

A state of tension that occurs when a person simultaneously holds two cognitions that are psychologically inconsistent or when a person’s belief is incongruent with his or her behavior.