An Auditor Should Recognize That the Application of Auditing Procedures

question 84

Multiple Choice

An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors or fraud and therefore should:

• A) plan and perform the engagement with an attitude of professional skepticism.
• B) not rely on internal controls that are designed to prevent or detect errors or fraud.
• C) design audit tests to detect unrecorded transactions.
• D) extend the work to audit most recorded transactions and records of an entity.

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Definitions:

Conflict Theory

A sociological perspective that emphasizes the role of power disparities and competition for scarce resources in society, viewing social life as an arena of inequality that generates conflict and change.

Functionalist Theory

A sociological perspective that emphasizes the way in which the parts of a society are structured to maintain its stability and functionality.

Two Solitudes

A phrase often used to describe the situation of lack of communication and understanding between two different groups or cultures.

Canadians

People originating from Canada, a country in the northern part of North America.