When Testing for Accuracy, an Auditor Searches for Evidence

question 51

Multiple Choice

When testing for accuracy, an auditor searches for evidence

• A) to verify that a recorded transaction or event took place and relates to the entity.
• B) that all disclosures that should have been included in the financial statements have been included.
• C) that transactions and events have been recorded at appropriate amounts.
• D) to verify that recorded assets are owned by the entity.

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Definitions:

Social Learning Theory

A theory that emphasizes the influence of other people. Even without reinforcement, people learn via role models. (Also called observational learning.)

Learning Theory

A conceptual framework describing how information is absorbed, processed, and retained during learning.

Scientific Method

A systematic approach to research where a problem is identified, relevant data is gathered, a hypothesis is formulated from these data, and the hypothesis is empirically tested.

Hypothesis

A specific prediction that can be tested, and proved or disproved.