To Emphasise Auditor Independence from Management, Many Companies

question 2

Multiple Choice

To emphasise auditor independence from management, many companies:

• A) establish a policy of discouraging social conduct between company employees and the staff of the audit firm.
• B) have the independent auditor report to an audit committee of outside members of the board of directors.
• C) request that a representative of the auditor be present at the annual general meeting.
• D) appoint a member of the audit firm to the company's audit committee.

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Definitions:

Variable-interval

A reinforcement schedule where a response is reinforced after a variable and unpredictable time interval has occurred.

Variable-ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses. This schedule creates a high steady rate of responding.

Fixed-ratio

A schedule of reinforcement where a response is only reinforced after a specific number of responses, common in behaviorist psychology.

Fixed-interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.