The Auditor Should Not Presume That Fraud Is Present in Revenue

question 22

True/False

The auditor should not presume that fraud is present in revenue recognition by management because the auditor must remain objective.

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Definitions:

John Watson

A pioneering psychologist best known for his work in establishing the behaviorist school of psychology.

Theory

A coherent group of propositions formulated to explain a group of facts or phenomena, often serving as the basis for further experimentation.

Unobservable Phenomena

Refers to occurrences or aspects that cannot be directly seen or measured, often requiring inference from observable effects.

Speculations

The act of forming theories or conjectures without firm evidence, often involving the anticipation of market trends in various contexts.