In Order to Provide Reasonable Assurance the Audit Must Be

question 24

Multiple Choice

In order to provide reasonable assurance the audit must be performed with an attitude of professional skepticism. Which of the following is most correct regarding the "attitude" of professional skepticism?

• A) auditors should assume that management is dishonest
• B) auditors should assume that management is neither dishonest nor honest
• C) auditors should assume that management is honest and mistakes are unintentional
• D) auditors should assume that management is incumbent in preparing financial statements

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Definitions:

Practical Application

The use of theoretical knowledge in a real-world context to solve practical problems or achieve specific outcomes.

Intelligence

The ability to learn from experience, solve problems, and use knowledge to adapt to new situations.

African Gray Parrot

A highly intelligent bird species native to the rainforests of West and Central Africa, known for its ability to mimic human speech.

Cognitive Abilities

The mental skills that involve the ability to learn, understand, reason, and solve problems.