If It Is Necessary in an Auditor's Report to Make

question 92

Multiple Choice

If it is necessary in an auditor's report to make reference to the work of the service auditor for outsiders to understand the audit report,then

• A)the auditor's report should indicate that the responsibility is shared with the service organization auditor.
• B)the auditor should state that the service auditor is responsible for the audit opinion.
• C)the service auditor's audit report contained a subject to opinion.
• D)the auditor's report must state that the auditor of the company using the service organization is responsible for the audit opinion.

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Definitions:

Temporal Discounting

In decision making, the greater weight given to the present over the future.

Certainty Effect

A cognitive bias where people give greater weight to outcomes that are certain, compared to outcomes that are only probable.

Reactance

An inspired response to propositions, individuals, guidelines, or policies that challenge or remove certain freedoms of behavior.

Risk Aversion

In decision making, the greater weight given to possible losses than possible gains.