Gaining an Understanding of How an Audit Client Measures and Assesses

question 65

Multiple Choice

Gaining an understanding of how an audit client measures and assesses its performance, assists the auditor to

• A) assess audit risk.
• B) evaluate the profitability of the audit client.
• C) gain an understanding of accounts that may be at risk.
• D) determine the overall audit strategy.

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Definitions:

Global Factors

Influences that affect economies, businesses, or individuals on a worldwide scale.

Emotional Lability

Describes a condition where a person experiences rapid and exaggerated changes in mood.

Arousal

Refers to the physiological and psychological state of being awake, alert, and engaged with the environment.

Attributional Style Questionnaire

A self-report inventory that assesses an individual's tendency to attribute outcomes to certain causes, analyzing their optimism or pessimism.