The Auditor Is Required by GAAP to Observe the Taking

question 1

True/False

The auditor is required by GAAP to observe the taking of physical inventory.

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Definitions:

Festinger

Refers to Leon Festinger, a psychologist known for the theory of cognitive dissonance, which explores the discomfort felt when holding conflicting beliefs, values, or attitudes.

Cognitive Dissonance

A state of psychological discomfort arising from holding two or more conflicting beliefs, values, or attitudes simultaneously.

Discomfort Justification

The process of creating a reason or justification for enduring an unpleasant experience, often to reconcile cognitive dissonance.

Symbolic Self-Completion

A psychological theory suggesting individuals seek to acquire and display symbols that reflect their self-identity, especially when their identity is in question.