An Auditor Who Is Professionally Skeptical Will Do Which of the Following

question 50

Multiple Choice

An auditor who is professionally skeptical will do which of the following?

• A)Critically question contradictory audit evidence.
• B)Carefully evaluate the reliability of audit evidence,especially in situations in which fraud risk is high.
• C)Reasonably question the authenticity of documentation.
• D)All of the above.

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Definitions:

Fixed Cost

Costs that do not change with the level of output or activity in the short term, such as rent, insurance, and salaries of permanent staff.

Product

Any good, service, or idea that can be offered to a market to satisfy a want or need.

Contribution Approach

An income statement format that organizes costs by their behavior. Costs are separated into variable and fixed categories rather than being separated into product and period costs for external reporting purposes.

External Reporting

The process of preparing and disclosing financial statements and other reports to entities outside of the corporation, such as investors and regulatory bodies.