An Auditor Need Not Abide by a Particular Auditing Standard

question 21

Multiple Choice

An auditor need not abide by a particular auditing standard if the auditor believes that:

• A)the issue in question is immaterial in amount.
• B)more expertise is needed to fulfill the requirement.
• C)the requirement of the standard has not been addressed by the PCAOB.
• D)any of the above three are correct.

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Definitions:

Own and Sell

The legal rights and ability to possess and then transfer the ownership of goods or assets.

Purchasers of Resources

Individuals or entities that buy or acquire resources for the purpose of production of goods and services.

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity, emphasizing decisions at the margin.

Scarce

A term describing the limited availability of resources relative to the wants and needs for them, leading to the necessity of making economic choices.