Which of the Following Is True Regarding the Financial Statement

question 48

Multiple Choice

Which of the following is true regarding the financial statement assertions?

• A)All assertions can be proved using only substantive procedures,but it would be too costly.
• B)Some assertions are virtually impossible to prove without some evaluation of control effectiveness.
• C)Some assertions can be proved using only an evaluation of control effectiveness.
• D)The evaluation of control effectiveness is only used because it is more efficient than using only substantive procedures.

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Definitions:

Pygmalion Effect

The phenomenon where higher expectations lead to an increase in performance; a form of self-fulfilling prophecy.

Perceptual Distortion

A cognitive bias or error that affects the accuracy of one's perception or interpretation of reality.

Vicarious Learning

The process of learning by observing the actions and outcomes of others rather than through direct experience.

Albert Bandura

A psychologist known for his work on social learning theory and for introducing the concept of self-efficacy.