Because Contingencies May Have Particular Reporting Implications,auditors Assess Client Contingencies

question 117

True/False

Because contingencies may have particular reporting implications,auditors assess client contingencies for possible disclosure and adjustment.

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Definitions:

Law of Small Numbers

A cognitive bias that leads people to draw broad conclusions from small data sets or limited information.

Outgroup Heterogeneity Bias

The tendency to view members of an out-group as more diverse and individual than members of one's own in-group.

Ingroup Differentiation Bias

Ingroup differentiation bias is the tendency to perceive and highlight differences within one’s own group, emphasizing diversity and individuality among members.

Outgroup Homogeneity

The perception that members of an outgroup are more similar to each other than they actually are, often attributed to a lack of personal familiarity.