The Reliability of a Client's Internal Documentation Is Most Affected

question 57

Multiple Choice

The reliability of a client's internal documentation is most affected by which of the following?

• A)the auditor's independence.
• B)management's motivation to misstate accounts.
• C)the type of audit report that will be issued.
• D)management's ability to understand generally accepted audit standards.

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Definitions:

Trust

Trust is the firm belief in the reliability, truth, ability, or strength of someone or something, foundational in both personal relationships and societal functions.

Motives

Internal driving forces that compel individuals to take action or make decisions towards achieving specific goals.

Social Exchange Theory

A conceptual framework positing that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs in human relationships.

Interpersonal Relationships

The connections and interactions between two or more people, which may be professional, personal, or otherwise.