Which of the Following Most Accurately Defines Professional Skepticism as It

question 56

Multiple Choice

Which of the following most accurately defines professional skepticism as it is used in auditing standards?

• A) It either assumes management is honest or slightly dishonest, but neither all the time.
• B) It neither assumes that management is dishonest nor assumes unquestioned honesty.
• C) It assumes management is honest most of the time.
• D) It assumes that management is dishonest in only rare instances.

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Definitions:

Price Range

The spread between the highest and lowest prices of a good, service, or asset in a specific period.

Optimal Cost

The lowest possible cost at which a particular operation, process, or activity can be performed efficiently without sacrificing quality or outcome.

Double-subscripted Variables

Variables in mathematical modeling or data analysis denoted with two subscripts, indicating their position in a matrix or their relationship between two sets.

Material Balance Equation

An equation used in chemical engineering to relate the quantities of materials entering and leaving a process.