Jane Finds a Material Misstatement While Auditing a Client's Accounts

question 78

Multiple Choice

Jane finds a material misstatement while auditing a client's accounts receivables. Her senior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be viewed as a team player in order to advance in the firm. So Jane follows her senior's instructions and ignores the misstatement. Which ethical theory did Jane use to make her decision?

• A) Egoism
• B) Justice
• C) Virtue ethics
• D) Utilitarianism

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Definitions:

Constructive Processing

Refers to the way individuals build up memories based on the integration of new information with existing knowledge.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, rather than merely repeating the word to oneself.

Long-Term Memory

A type of memory capable of storing an unlimited amount of information for periods ranging from a few days to a lifetime.

Recognition

The ability to identify previously encountered events, objects, or people.