Read this paragraph and attempt question ⁉️
Professional skepticism is a mindset that involves being alert to potential errors or fraud, questioning assumptions, and critically evaluating evidence. It's a skill that develops over time and is an important part of the work of professional accountants.
Here are some characteristics of professional skepticism:
Questioning mind: Being open to questioning assumptions
Critical assessment: Evaluating evidence and information objectively
Alertness: Being aware of conditions that could indicate fraud or error
Professional judgment: Applying professional judgment to the situation
Critical thinking: Using critical thinking skills to interpret information
Bias awareness: Being aware of how bias might affect how data is used or reported
Professional skepticism is important for auditors because it influences how they interpret evidence and choose audit procedures. However, it can also take more time to complete an audit when auditors are more skeptical.
To encourage professional skepticism, companies can: Set clear expectations about its importance and Incorporate it into performance evaluations.
⬆️ Please Read above paragraph and attempt following questions ⁉️
Question 1
What is professional skepticism?
A) A mindset that involves being alert to potential errors or fraud
B) A skill that develops over time
C) A part of the work of professional accountants
D) All of the above
Answer:
Question 2
Which of the following is a characteristic of professional skepticism?
A) Questioning mind
B) Critical assessment
C) Alertness
D) All of the above
Answer:
Question 3
What is the importance of professional skepticism for auditors?
A) It influences how they interpret evidence
B) It helps them choose audit procedures
C) It saves time in completing an audit
D) Both A and B
Answer:
Question 4
What is a potential drawback of professional skepticism?
A) It can lead to inaccurate audit results
B) It can take more time to complete an audit
C) It can lead to unnecessary audit procedures
D) It can lead to a lack of objectivity
Answer:
Question 5
How can companies encourage professional skepticism?
A) Set clear expectations about its importance
B) Incorporate it into performance evaluations
C) Provide training on professional skepticism
D) Both A and B
Answer:
Question 6
What is the relationship between professional skepticism and bias awareness?
A) Professional skepticism involves being unaware of bias
B) Professional skepticism involves being aware of how bias might affect data
C) Professional skepticism is unrelated to bias awareness
D) Professional skepticism involves ignoring bias
Answer:
Question 7
What is the role of critical thinking in professional skepticism?
A) Critical thinking is not necessary for professional skepticism
B) Critical thinking is used to interpret information
C) Critical thinking is used to choose audit procedures
D) Critical thinking is used to evaluate evidence
Answer:
Question 8
What is the importance of professional judgment in professional skepticism?
A) Professional judgment is not necessary for professional skepticism
B) Professional judgment is used to evaluate evidence
C) Professional judgment is used to choose audit procedures
D) Professional judgment is applied to the situation
Answers for MCQ.. Professional skepticism
Question 1
What is professional skepticism?
A) A mindset that involves being alert to potential errors or fraud
B) A skill that develops over time
C) A part of the work of professional accountants
D) All of the above
Answer: D) All of the above
Question 2
Which of the following is a characteristic of professional skepticism?
A) Questioning mind
B) Critical assessment
C) Alertness
D) All of the above
Answer: D) All of the above
Question 3
What is the importance of professional skepticism for auditors?
A) It influences how they interpret evidence
B) It helps them choose audit procedures
C) It saves time in completing an audit
D) Both A and B
Answer: D) Both A and B
Question 4
What is a potential drawback of professional skepticism?
A) It can lead to inaccurate audit results
B) It can take more time to complete an audit
C) It can lead to unnecessary audit procedures
D) It can lead to a lack of objectivity
Answer: B) It can take more time to complete an audit
Question 5
How can companies encourage professional skepticism?
A) Set clear expectations about its importance
B) Incorporate it into performance evaluations
C) Provide training on professional skepticism
D) Both A and B
Answer: D) Both A and B
Question 6
What is the relationship between professional skepticism and bias awareness?
A) Professional skepticism involves being unaware of bias
B) Professional skepticism involves being aware of how bias might affect data
C) Professional skepticism is unrelated to bias awareness
D) Professional skepticism involves ignoring bias
Answer: B) Professional skepticism involves being aware of how bias might affect data
Question 7
What is the role of critical thinking in professional skepticism?
A) Critical thinking is not necessary for professional skepticism
B) Critical thinking is used to interpret information
C) Critical thinking is used to choose audit procedures
D) Critical thinking is used to evaluate evidence
Answer: B) Critical thinking is used to interpret information
Question 8
What is the importance of professional judgment in professional skepticism?
A) Professional judgment is not necessary for professional skepticism
B) Professional judgment is used to evaluate evidence
C) Professional judgment is used to choose audit procedures
D) Professional judgment is applied to the situation
Answer: D) Professional judgment is applied to the situation
This topic helps you to crack difficult tricky MCQ question ⁉️ in US CMA Part 1 and CIA Part 1
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