If There Is a Deviation in the Statements' Preparation in Accordance

question 96

Multiple Choice

If there is a deviation in the statements' preparation in accordance with GAAP, and another accounting principle was applied on a basis that was not consistent with that of the preceding year:

• A) the auditor must choose which modification to include in the audit report.
• B) only the most material modification can be disclosed.
• C) more than once modification should be included in the report.
• D) none of the above.

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Definitions:

Expectancy

The belief or anticipation that something will happen in the future, often influencing behavior towards achieving it.

Instrumentality

In motivation theory, the perceived relationship between performance and the attainment of certain outcomes, meaning one's belief that performing at a certain level will lead to desired rewards.

Valence

The intrinsic attractiveness or aversiveness of an event, object, or situation.

Alderfer's ERG Theory

A motivational theory proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth, suggesting that more than one need may motivate at the same time.