In the Audit of the Transactions and Amounts in the Capital

question 61

Multiple Choice

In the audit of the transactions and amounts in the capital acquisitions and repayments cycle, the auditor must take great care in making sure that the significant legal requirements affecting the financial statements have been properly fulfilled and:

• A)any violations are reported to the SEC.
• B)are adequately disclosed in the financial statements.
• C)must issue a disclaimer if they haven't been fulfilled.
• D)any departures from the agreements are made with management's knowledge and consent.

---

Definitions:

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Retroactive Interference

The backward-acting disruptive effect of newer learning on the recall of old information.

Previously Learned Information

Knowledge or skills that have been acquired or understood in the past and can influence current understanding or behavior.

Toothbrushing

The act of cleaning the teeth with a toothbrush and usually toothpaste to maintain oral hygiene.